A number of European countries fear that if implemented, the confiscation of the frozen assets of the Central Bank of the Russian Federation could violate international law and affect the euro as a reserve currency, reported Bloomberg.
European countries, including Germany, Belgium and Luxembourg, are concerned that the confiscation could violate state sovereignty, as well as affect the euro as a reserve currency and the financial stability of the euro area.
As European Commissioner for Economic Affairs Valdis Dombrovskis said in an interview with the agency, any option for confiscation of assets must be “legally sound“ in order to then withstand a potential judicial investigation. "We have already taken an important step when we froze these assets, and then there was a question of financial stability or the consequences for the euro," he said.
Bloomberg earlier reported that the European Union is assessing the legal and financial consequences that could arise from the seizure of frozen assets of the Russian Central Bank for use in Ukraine. According to the agency, the EU diplomatic service and a number of member states are considering various options, including the need for court decisions as a legal basis for the seizure of assets or the possibility of being content with only calculating damages.
In October, the leaders of the Group of Seven (G7) adopted a joint statement announcing that they had reached an agreement on the details of a USD 50 billion loan. It was emphasized that the loans "will be serviced by future proceeds from frozen sovereign assets of Russia within the framework of the legal systems of the G7 countries and international law." At the same time, the United States pledged to allocate 20 billion USD to Ukraine, and the remaining 30 billion USD will be allocated through joint efforts of the G7 and the EU.