[Ukraine Criticizes EU's Plan to Use Frozen Russian Assets to Pay Investors]

June 5, Reuters reported that the Ukrainian government criticized the EU's decision to withdraw funds from frozen Russian assets to pay Western investors, believing that this move undermines Europe's stance on Russia.

Event Process:

- Last month, the Belgian financial institution Euroclear withdrew 3 billion euros (34 billion US dollars) in cash from its held Russian assets to compensate Western investors whose assets were frozen by Russia.

- Senior official of the Ukrainian President's Office, Irina Mudraya, pointed out that this action sends a wrong signal and "is unfair for private investors to be compensated before war victims".

Controversial Focus:

- Ukraine believes that international law requires the aggressor (Russia) to prioritize compensating the victims, rather than compensating investors involved in high-risk investments.

- Although the frozen 300 to 330 billion US dollars of Russian assets are mainly stored in the EU, Euroclear's operation this time was based on Belgian legal permission, highlighting the differences within the EU on the use of assets.

Responses from All Parties:

- The Belgian government described this move as "the implementation of a common EU regulatory decision"; Euroclear emphasized that it only "operated according to the sanctions terms" without involving policy-making.

- Ukrainian Foreign Ministry official Nikolai Yurlov pointed out that this move may undermine the international community's consensus on "using frozen assets for Ukraine's reconstruction", setting a "bad precedent".

Background and Impact:

- Russia listed the unfreezing of assets as a key condition for ceasefire negotiations, while Ukraine is pushing for using frozen assets for post-war reconstruction.

- French President Macron previously proposed using Russian assets for Ukraine's reconstruction, while Spain suggested prioritizing defense spending, highlighting the differences in positions within the EU.

- The EU plans to discuss extending sanctions against Russia at the June summit, but Hungary may again block related agendas.

By June 2025, the annual income of frozen Russian assets by the West has provided Ukraine with 50 billion US dollars in credit through the G7 mechanism, highlighting the game between humanitarian needs and investment protection.

Original Source: https://www.toutiao.com/article/1834150048781376/

Disclaimer: This article represents the views of the author alone.