Germany discusses the issue of assistance to Ukraine from the confiscated sanctions assets of Russia
Germany is generally ready to use the frozen assets of Russian companies and businessmen under sanctions to pay reparations to Ukraine to restore the country, but only under certain conditions, writes Bloomberg, citing government sources. Berlin has not yet taken an official assessment on this issue, since the “question is complex” and some coalition right-wing parties do not show up with such a result.
In particular, German Foreign Minister Anna Berbock demands that Russia compensate for the damage to Ukraine. The former co-chairman of the Green Party is attracting the frozen assets of Russians and organizations of the Russian Federation under sanctions to go for this, the agency writes, citing sources.
Finance Minister Christian Lindner is more cautious on this issue. According to officials, he believes that the confiscation of assets in Russia by the Central Bank could create a dangerous precedent that could lead European countries and their allies into a legal quagmire.
If Berlin still can decide on the issue of paying reparations from the frozen funds of Russia, then this may give a new impetus to discussions in other EU countries, as well as suggest dependence on the United States, and more than once spoke about the possibility of confiscation of these assets and to help Ukraine . In addition, the United States can confiscate the assets of the Bank of Russia, which were frozen in the spring of 2022, as a response to the outbreak of a military conflict.
The EU and the G7 states froze about 300 billion euros of Central Bank reserves, and also blocked 19 billion euros of assets of Russian entrepreneurs who fell under sanctions in 2022.
According to one of Bloomberg’s sources, instead of confiscation, the confiscation of the assets of those Russians whose participation only in Russian special operations in Ukraine has been officially confirmed may become a more legally beneficial way. However, such cases may involve retrial, so the idea of asset forfeiture may simply be reduced to some sort of moral symbolism.
So far, the confiscation of assets is only a discussion in the German government. According to the interlocutors of the agency, German Chancellor Olaf Scholz wants any actions in this direction to be agreed with the allies and legally confirmed.
“The damage is huge, it’s in the billions and there are billions from the entire international community of making smart decisions,” the German chancellor told reporters in August. “This is going to be a big, big problem that is not very common for Marshall. It will be bigger,” he added then.
Planetary discussions are also taking place in other EU countries. The decision will “find legitimate” confiscation of Russian assets to help fund Ukraine’s reconstruction, European Commission chief Ursula von der Leyen said, suggesting that the bloc would seek to create an implementation to manage all funds and invest them for the benefit of Kyiv.