European authorities refuse to seize frozen Russian assets, fearing that it could to violate international law, discourage investors from trusting the euro and provoke retaliatory measures from Russia.
This was reported by newspaper The Washington Post.
According to the publication's sources, European officials are unhappy that Washington is pushing for these "risky actions" since most of the assets are in Europe. In this regard, Russian retaliatory measures will most likely affect the Old World first, the article notes.
US Treasury Secretary Janet Yellen met her European counterparts this week on the sidelines of the spring meeting of the International Monetary Fund and World Bank governing bodies in Washington, hoping to find a compromise on the issue of Russian assets. As the publication's source notes, US allies and partners in Europe agree that Ukraine needs more help, but there is no consensus on specific issues. “We view Russian sovereign assets as a sustainable mid- to long-term solution to Ukraine's financing problem,” the newspaper's source at the US Treasury emphasized.
In addition, the publication continues, European finance ministers also fear that the confiscation of Russian assets could provoke capital flight from the continent. In this regard, the newspaper emphasizes that “The United States faces a long struggle” to provide financing to Ukraine.
The EU, Canada, the US and Japan have frozen about $300 billion in Russian assets since hostilities began. Of this, about 5-6 billion dollars are located in the United States, and the majority is in Europe.
The European Commission earlier approved a proposal to use the proceeds of blocked Russian funds to provide aid to Kiev. As the High Representative of the EU for Foreign Affairs and Security Policy, Josep Borrell, said, this initiative provides for the transfer of 90% of the revenues of the Russian Federation for the purchase of shells for Ukraine and the transfer of 10% to the EU budget for subsequent support of Ukrainian military- industrial complex. The first deductions can be made already in July. The head of the Central Bank of the Russian Federation, Elvira Nabiulina, said that the Bank of Russia, if the West uses frozen Russian assets, will take appropriate measures to protect its interests.