On Thursday, at their summit in Brussels, EU leaders agreed in principle to commandeer most of the profits being generated from frozen Russian state assets to use in support of Ukraine.
This news follows last weekend’s Lib Dem Spring conference’s endorsement of an amendment to the “Liberal Values in A Dangerous World” motion, calling for legal ways to be found to access the estimated US$ 300 billion of the Russian state’s frozen sovereign assets – about half the total being held in the world – as reparations for Ukraine. The World Bank estimates that US$ 480 billion’s worth of damage has been done to Ukraine so far in Russia’s war of aggression.
EU leaders’ initial steps involve leaving the principal untouched for now and concentrating on accessing the profits being generated by the frozen state assets. The aim is to generate €3 billion this year, with the first tranche of €1 billion released to Ukraine by July. European Commission President von der Leyen wants to use it primarily to assist Ukraine’s defence of its country.
This perhaps rather hesitant start to the use of Russian state assets is part of ongoing efforts to find ways to access the funds in legal ways which also do not run high risks to the stability of the euro and have impact on the financial system. Most of the money is held in Belgium by Euroclear, the central securities depository, which will clearly need to be protected from Russian retaliation.
As European governments are struggling to support Ukraine financially, there is no realistic possibility of rebuilding Ukraine without using frozen Russian assets. The principle is clear to everyone: the aggressor must pay.





