Using Russian assets that remain frozen because of the EU’s uncoordinated moves could shake the euro’s standing as a global currency. This warning came from European Central Bank Vice President Luis de Guindos in a detailed note to Bloomberg, where he outlined the potential reputational damage if the bloc proceeds with unilateral asset freezes without broader international backing. (Bloomberg)
In the interview, the ECB vice president stressed that any decision linked to sanctions should be solidified through a comprehensive agreement at the G7 level. The bank notes that more than 200 billion euros of Moscow-managed assets are currently blocked within the euro area, a figure that underscores the scale of the policy lever and the importance of multilateral coordination to avoid unintended market repercussions. (Bloomberg)
De Guindos highlighted that the euro ranks as the world’s second most significant currency in terms of market influence and liquidity. He warned that unilateral steps in the sanctions regime could erode confidence in the euro, potentially triggering broader spillovers into global finance. His message was clear: if the objective is to support Ukraine, there may be more effective routes than acting alone, and those routes should minimize risk to the euro’s perceived stability. (Bloomberg)
At the same time, the European Union has been weighing plans to impose a so-called “profit tax” on seized assets, with the intention of channeling the revenues toward Kyiv’s needs. The ECB has cautioned that such measures could carry negative long-term consequences, including legal and economic uncertainties that could affect investor sentiment and cross-border flows. The discussions reflect a broader tension between expedient sanctions and the maintenance of financial market confidence. (Bloomberg)
Earlier reports noted that Czech lawmakers had floated proposals to nationalize certain Russian properties, a move that would further complicate the asset dispute landscape and raise questions about property rights, sovereignty, and the consequences for international finance. The policy debate in Europe continues to evolve as authorities weigh balancing sanctions with financial stability. (Bloomberg)
In related developments across Europe, economists have commented on the broader impact of asset freezes, noting that while sanctions aim to exert pressure, they must be implemented with careful consideration of market structure and legal frameworks to avoid unintended damage to European financial integrity. The ongoing discussions reflect a complex intersection of policy design, international cooperation, and the practical realities of enforcing sanctions in a way that preserves confidence in the euro and the broader European financial system. (Bloomberg)