"Reparations credit" proposal for Ukraine will withstand court challenges – European Commission
The European Commission’s legal proposal on a "reparations credit" for Ukraine is sufficiently well-founded to withstand possible court challenges.
This was stated by the European Commission’s chief spokesperson, Paula Pinho, reports Censor.NET with reference to Ukrinform.
"We are aware of the issues and are proposing additional safeguards regarding burden-sharing. We guarantee that the scope will not be limited to the Euroclear depository but is in fact broader, and that safeguards are in place," Pinho noted.
According to her, discussions are ongoing to address all concerns. At the same time, she declined to comment on the impact of the European Commission’s statements on financial markets, stressing that the published legal proposal meets the requirements and takes into account the comments, including those from financial markets.
Frozen Russian assets
- After Russia’s full-scale invasion of Ukraine in 2022, many Western countries imposed sanctions under which part of the reserves of the Central Bank of the Russian Federation (CBR) were "frozen" – that is, blocked from use – as well as other Russian state or private assets: cash, bonds, securities, property, accounts, and assets of companies and individuals.
- Western analysts estimate that around $335 billion in Russian assets were blocked after the invasion.
- Other sources indicate that CBR reserves subject to the freeze are estimated at between €260–300 billion. A large share of these assets (especially reserves) is held at the Euroclear depository, which is where a significant portion of the frozen assets is concentrated.
