The Ukrainian authorities have sharply criticized the decision to transfer part of the frozen Russian assets in Europe to Western investors. Kyiv warns that such practices undermine the unity of the European Union in confronting Moscow, reports Baltimore Chronicle citing Reuters.
Last month, the Belgian financial company Euroclear transferred €3 billion (equivalent to $3.4 billion), previously owned by Russian investors, to compensate Western companies for losses incurred after their assets were nationalized in Russia. This move caused concern in Ukraine, where it was stated that creating such a precedent threatens the legal foundation of the sanctions policy.
According to Iryna Mudra, Deputy Head of the Office of the President of Ukraine, compensation should primarily go to war victims, not private investors. She emphasized that international law requires reparations from the aggressor to the affected population, not payments to entities that “knowingly invested in a high-risk jurisdiction.”
The transfer of funds raises additional worries amid growing Western fatigue with prolonged support for Ukraine. Meanwhile, frozen assets of the Russian Central Bank, most of which are held in the Euroclear system, remain a key lever of pressure on Moscow. Ukraine insists that these funds should be used for the country’s reconstruction and defense.
Iryna Mudra also warned that if these funds return to Russia, they will be spent on military aggression needs: “This money will go to tanks, rockets, drones, and training new soldiers.”
At the June EU summit, the extension of sanctions against Russia is expected. However, some countries, notably Hungary, may attempt to block this decision.
Earlier we wrote that NBU to change cash accounting: new classification for the hryvnia.