European Commission President Ursula von der Leyen.

(AFP file photo)

[Financial Channel/Comprehensive Report] The European Commission proposed a plan on Wednesday (November 30) to use the proceeds of Russian assets frozen under sanctions to compensate Ukraine for losses caused by the war.

Reuters reported that officials from the European Union, the United States and other Western countries have been debating whether Ukraine could benefit from freezing Russian assets, including about $300 billion in Russian central bank deposits and listed 20 billion US dollars (approximately NT$616.3 billion) held by blacklisted Russians.

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Moscow says confiscating its assets or those of the country's citizens amounts to "theft".

European Commission President Ursula von der Leyen said in a statement that Russia must pay an economic price for the damage it has caused.

Von der Leyen mentioned that the losses faced by Ukraine are estimated at 600 billion euros (approximately NT$19.1 trillion), and Moscow and the Russian oligarchs must compensate Ukraine for their losses and pay for the reconstruction of the country.

EU officials said the short-term option for Western countries was to create a fund to manage and invest the central bank's liquid assets, mainly cash, and use the proceeds to support Ukraine.

When the sanctions are lifted, the assets will be returned to their owners, possibly as part of a peace deal to ensure Ukraine is compensated for damages.

An official pointed out that this operation will not be easy and therefore requires strong support from the international community, but the EU firmly believes that this is a feasible measure.

Another official added that the legal distinction between the complete forfeiture of assets and the forfeiture of proceeds from investments in those assets remains unclear because there has been no precedent for such programs in the past.

EU officials mentioned that preliminary contacts have been made with the United States on the plan to target the assets of the Russian central bank, and it is too early to reach a conclusion. This idea will also be communicated to the G7 (7 large industrial countries) working group in December .

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