EU top diplomat suggests using frozen Russian assets to rebuild Ukraine
- 12 December, 08:44
The EU’s new High Representative for Foreign Affairs and Security Kaja Kallas has said that billions of Russian state funds that have been frozen in the EU in response to the war in Ukraine should be given to Kyiv for the construction of the country.
The official said Kyiv had a legitimate claim of compensation due to “all the damage that Russia has caused” since Ukraine’s full-fledged invasion of Ukraine in February 2022.
“Better to have a small bird in your hand than a big bird on the roof… So we have the small bird in our hand the frozen assets and this is the tool to also pressure Russia," explained Kallas.
So far, the EU has only used profits from frozen Russian assets to fund Ukraine, including a $50 billion (€47.5 billion) loan approved by the G7 at a summit last month. This loan will be repaid through interest from frozen Russian assets worldwide.
On Tuesday, the US Treasury Department announced that it had transferred its share of $20 billion (€19 billion) from the loan to Ukraine to support its economic and financial needs.
The EU holds roughly €210 billion in Russian Central Bank assets but has been reluctant to seize the entire amount due to concerns about its legality and potential risks to the stability of the euro.
Kallas told The Guardian that Europe must increase its support for Ukraine, especially given the uncertainty over US aid under President-elect Donald Trump, who has previously criticized the level of US assistance to Ukraine.
“If the US cuts back on aid, we must continue to support Ukraine, because I fear what might happen if Russia prevails,” Kallas said, adding, “I believe we would face more wars, and larger ones.”
