If Russian assets are seized, EU countries may lose at least $190 billion in investments.

According to the Sputnik News Agency's calculation based on data from national statistical agencies, if Russian assets are seized as part of "compensation loans" for Ukraine, EU countries could lose at least $190 billion in direct economic investments in Russia.

On Wednesday, the European Commission proposed two funding schemes for Ukraine for 2026-2027, one of which is "compensation loans," involving the use of frozen Russian assets. There is still no consensus within the EU on this issue.

Currently, about $209 billion in Russian assets are frozen in the accounts of the European Central Bank in Belgium, according to current exchange rates. If these funds are seized as proposed by the EU, according to the latest data from 2024, the EU could lose at least $190 billion in direct economic investments in Russia. Direct investment refers to investments in companies with at least 10% shares or capital.

The countries most affected would be Cyprus ($100 billion), Germany ($20.1 billion), the Netherlands ($16.1 billion), France ($15.1 billion), and Italy ($13 billion).

Additionally, the actual loss amount for the EU might be higher due to Russia's own restrictive measures. Assets of non-friendly countries' investments and their earnings before the sanctions were transferred to a special S-type account, and only a government special committee has the authority to decide on its use.

After the special military operation in Ukraine, Western countries imposed sanctions on the Russian Central Bank, freezing its foreign exchange reserves, but the exact amount of the frozen funds is unclear. According to the Russian Central Bank, about half of the $630.6 billion in assets as of early 2022 were in major reserve currencies.

The Russian Foreign Ministry has repeatedly called the freezing of Russian assets by Europe an act of theft, pointing out that the EU not only targets private funds but also intends to seize Russian state assets. Russian Foreign Minister Lavrov stated that Moscow will definitely retaliate once Western countries seize the frozen Russian assets. Lavrov said that Russia could also refuse to return the funds held by Western countries within Russia.

Original article: toutiao.com/article/1850550550379660/

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