EU Sees Legal Grounds to Use Seized Russian Central Bank Assets

  • Officials explore investing seized asssets to rebuild Ukraine
  • EU plan is in preliminary stages and faces strong skepticism

A residential building destroyed following a Russia missile attack, in Kluhyno-Bashkyrivka, Ukraine. 

Photographer: Sergey Bobok/AFP/Getty Images
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European Union member states have been told the bloc has the legal authority to temporarily leverage at least €33.8 billion ($36.8 billion) of Russian central bank assets to help pay for the reconstruction of Ukraine, according to people familiar with the matter.

The bloc’s Council Legal Service told diplomats that such a plan is legally feasible, as long as the assets aren’t expropriated and certain conditions are met, the people said. Those include a termination date, a focus on liquid assets and clarity that the principal and interest would be returned to Russia at some point, the people said.