Hello, friends! My name is Maksym Nesvitailov, a political analyst and consultant. Today we're discussing the frozen Russian assets in Europe and the prospects for their transfer to Ukraine. This issue has been ongoing since the start of Russia's full-scale invasion, when assets worth over $300 billion were blocked in the EU.
Currently, Ukraine receives only the interest from these frozen assets. The full transfer of the principal is complex and involves important legal nuances. If a transfer occurs before the end of the war and without a tribunal decision, Russia could file numerous lawsuits against the EU. There has not yet been an official judicial ruling recognizing Russia as the aggressor, so reparations are only possible after the war and a relevant tribunal decision.
There are economic risks too: expropriating private assets could undermine trust in the European financial system and trigger capital outflows from other countries. Because of this, Europe is acting cautiously and seeking lawful solutions.
On the horizon, the European Commission is developing a new scheme involving the creation of a specialized holding to centralize nearly $200 billion in frozen assets. After the war, these could be directed towards Ukraine's reconstruction. Decisions will be made by qualified majority without requiring unanimity, which could fast-track the transfer.
The issue will be discussed at the EU Foreign Affairs Council on August 30. An official decision has yet to be made, but the outlook is encouraging for Ukraine.