The European Union cannot yet legally confiscate Russia's frozen assets, and instead focuses on the temporary use of these assets.

It is reported by Bloomberg with reference to the relevant document.

The EU is focusing on two options as it continues to explore how $219 billion of Russia's frozen central bank assets could be used and funneled to Ukraine.

Many of the funds are in the European depository Euroclear, where they brought in almost 750 million euros until the first quarter of 2023.

The bloc is expected to seek a mandate to work on the policy from EU leaders during a meeting in Brussels.

The EU's working group on the use of Russian reserves frozen under the bloc's sanctions discussed how to gather information and evaluate options in accordance with EU law and international law.

Its members do not see "any reliable legal path that would allow the confiscation of frozen or immobilized assets only on the basis that these assets are under EU restrictive measures," the document concluded.

Instead, it helps channel excess returns on investment in Ukraine.

Austrian Foreign Minister Alexander Schallenberg urged caution.

"I fully understand the emotionality of the debate and what we say we have to take these assets into our own hands. But we are states governed by the rule of law. We defend the rules-based international order. So whatever we do in this case must be completely waterproof. It can be challenged, and it can be challenged in European or American courts. If any of these actions were overturned by a judge, it would be a diplomatic and economic disaster," he said.

Meanwhile, the United States offers to help Ukraine with frozen Russian assets. On June 15, the US Congress introduced a bill that will allow the use of frozen assets of Russia to help our country.

Also, for the first time, US Attorney General Merrick Garland allowed the transfer of confiscated Russian assets to Ukraine, in particular, funds of oligarch Konstantin Malofeev.

Read also:

  • Germany ready to give frozen Russian assets for reconstruction of Ukraine, but there are conditions – Bloomberg
  • The EU has found a way to use the frozen assets of the Central Bank of the Russian Federation to restore Ukraine – Bloomberg
  • The European Commission is looking for an opportunity to direct frozen Russian assets to the reconstruction of Ukraine