European Union members did not back Belgium’s plan to use frozen Russian assets as collateral to fund Ukraine’s reconstruction. The information was reported by Reuters.
A European official, who spoke on condition of anonymity, noted that using assets as collateral introduces legal, economic, and financial risks similar to outright confiscation. He added that most legal teams within G7 economies have already considered these implications. The official emphasized that pledging assets as collateral entails ownership changes, effectively amounting to seizure. Four additional officials corroborated this assessment.
The report highlighted ambiguity over which institution would issue the bonds tied to the collateralized assets.
News from yesterday suggested Eu ropean Union concerns about the consequences of seizing Russian assets. Politico reported that Europe fears possible Russian cyber retaliations against Western states.
Previously, the Ukrainian Ministry of Defense stated the level of military aid as of February 2022. [Citation: Reuters]