FT: EU demanded to postpone proposals on Russian assets
The Financial Times reports that several EU countries have privately insisted that the European Commission postponed its proposals on the use of revenues from frozen Russian assets, as this may create legal and financial problems and undermine foreign states’ confidence in the safety of assets held in Europe.
Earlier, EC head Ursula von der Leyen said that the European Commission would submit a proposal before the summer recess to use the proceeds from frozen Russian assets to finance Ukraine.
“The EC has promised within weeks detailed proposals on how to redirect the revenues to support Ukraine’s reconstruction. But the move is fraught with legal and financial problems… Some capitals have privately insisted that the commission postpone its proposals,” the newspaper said.
Earlier, the Financial Times cited knowledgeable sources as saying that the European Central Bank (ECB) had warned the European Commission against diverting payments on Russian Central Bank bonds to help Ukraine, as this could undermine confidence in the euro as a global currency.
As the publication notes, the EU member states are strongly divided over the idea. Major member states, including Germany, are reluctant to rush into the initiative. Like the ECB, they fear the radical proposal could undermine foreign governments’ faith in the safety of assets held in Europe, the Financial Times notes. One German official, for example, said that fearing sanctions, a foreign country might reduce its reserves in euros.
“There is a lot of work to be done to convince member states,” the Financial Times quoted an unnamed European official as saying.
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