European Union countries have shown little enthusiasm for Belgium’s proposal to use frozen Russian assets to benefit Ukraine by issuing special debt.
sauce: European Pravda.Reuters
detail: Previously, media reported that Belgium proposed to its Ukrainian ally to issue bonds to finance Kiev with Russian assets as collateral.
Belgium’s proposal was discussed at G7 finance ministries as an option for using Russia’s frozen assets, but the EU received a lukewarm response, Reuters writes.
“What we do know is that using assets as collateral has the same legal, economic and financial concerns as forfeiture, and most G7 legal departments are considering that.” a European official familiar with the discussions told the news agency.
He and four others interviewed by Reuters agreed that using assets as collateral is legally equivalent to forfeiture and therefore carries similar risks.
The sources also pointed to other issues with Belgium’s plan, including who would issue the bonds and how potential investors would treat them if they default.
Moreover, European officials have expressed concern that such a move could spark a backlash against European assets in Russia and damage the eurozone’s reputation.
Last month, EU foreign ministers reached a political agreement About plans to use Russian assets to support Ukraine.
Read more about this topic: The challenge of expropriation: what will help Ukraine achieve the transfer of Russian assets
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