EU lacks legal authority to seize entire frozen Russian assets, says Bloomberg

Bloomberg reported that EU authorities have come to the conclusion that they cannot legally seize all frozen Russian assets totaling 200 billion euros.

According to the agency, the EU working group on the use of frozen Russian assets has not found a “reliable legal way” to confiscate the frozen assets “only on the grounds that these assets are under sanctions.”

For this reason, according to the agency, the EU intends instead to focus on the temporary use of these funds.

In addition, according to Bloomberg sources, several major global banks have expressed concern that Moscow could deliberately retaliate if the EU seizes Russian assets.

The agency’s information confirms that the European Union is exploring ways to funnel excess investment profits to Kyiv. But the European Central Bank has previously warned the European Commission that the withdrawal of profits from operations with frozen Russian assets could undermine confidence in the euro as a world currency and undermine global financial stability. In this regard, the European Union chose to oblige companies that receive large profits from Russian investments to transfer a large amount to the European Union.

EU representatives explained to the agency that such a decision would not affect the legal status of assets and financial stability.

Since last year, the European Commission has repeatedly stated that current European law does not allow foreign assets frozen as a result of unilateral EU restrictions to be seized and transferred to another person or country.

Source: TASS

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