EU officials hit back at Christine Lagarde’s warnings that measures against sanctioned Russian assets could put the eurozone’s financial stability at risk
THE The European Union and the European Central Bank are at loggerheads on plans to use profits from frozen Russian assets to help rebuild Ukraine, Bloomberg reports.
EU officials objected to the ECB president’s warnings Christine Lagarde that the measures against the assets subject to sanctions they could endanger the financial stability of the eurozone and the liquidity of the single currency, people familiar with the matter told Bloomberg.
The Commission reportedly rejected the ECB’s arguments, saying that any risk emerged — and was assessed — when the assets were first frozen in February 2022 following Russia’s wide-scale invasion of Ukraine, and that so far, none of those fears have come true.
According to one of Bloomberg’s sources, this option has no effect the assets themselves or any requirements of the Russian Central Bank, nor does it affect the EU’s role in holding securities.
The EU is exploring options for using frozen assets of the Russian Central Bank over $200 billion to help Ukraine. Although Brussels judged that they could not legally confiscate the funds, EU officials were discussing how to at least use the profits from these assets and send them to Ukraine.
The European Commission initially said it would table a proposal this summer, but the alleged disagreement has pushed back the timetable until after the commission’s summer break, Bloomberg wrote.
According to the agency, profits from frozen Russian assets could yield up to 3 billion euros in cash and securities.
Source: Skai
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