The EU has been discussing possible ways to use frozen Russian assets to fund Kyiv’s defense and reconstruction.
Moscow has no plans to seize European assets, including from companies and banks, but will reconsider its position if the European Union confiscates its frozen assets, Russian Deputy Finance Minister Alexei Moiseev said on Oct. 22.
As much as $250 billion worth of Russian assets have been frozen in the European Union since the United States and its allies banned transactions with Moscow’s central bank and Ministry of Finance after Russia invaded Ukraine in February 2022.
Discussions within the EU are underway to find a method to use the frozen assets to further finance Kyiv’s defense and the reconstruction of the country, without directly confiscating them due to legal issues.
Though many within the bloc have thrown support behind the idea, others, including several member states such as Luxembourg, Belgium, and Hungary, as well as organizations such as the European Central Bank, have voiced concerns.
In comments to reporters, Moiseev said Europe had so far avoided outright confiscation of the frozen assets and said Moscow would do likewise unless the situation changes.
“We are not confiscating anything yet. The Europeans haven’t called for confiscation, so we won’t confiscate anything until they do. If they do end up confiscating, then we will consider it,” he said.
He added that a recent presidential decree on the accelerated privatization of state assets was in no way linked to plans to seize European sovereign assets.
In the Sept. 30 decree, Russian President Vladimir Putin appointed PSB, a bank that is under Western sanctions, as the Kremlin’s agent in state property sales.
The decree said the measures were “in connection with the unfriendly actions of the United States of America and the foreign states and international organizations that have joined them,” which prompted speculation that it was brought in to help Russia swiftly return the favor if its frozen assets were seized.
Moiseev said that private European companies and banks that are still operating in Russia had not been seized by the state and were therefore not subject to the new decree.
“Forget about European assets. No one is considering or discussing these issues,” he said, adding that the purpose of the decree was to create a fresh channel for property sales.
Russian authorities have seized assets worth about $50 billion since the start of the war in Ukraine, including the assets of Western companies leaving the country
By Guy Birchall
