Can frozen Russian assets be used to restore Ukraine? The EU is considering it

James Frater and Alex Hardy, CNN

The European Union is setting up a working group to explore the possibility of using frozen Russian assets to rebuild Ukraine.

The group will conduct “legal, financial, economic and political analysis” to assess this possibility, the Swedish government said in a statement on Tuesday. Sweden currently presides over the EU Council, which sets the bloc’s political priorities.

The statement added that part of this work will are intended to provide a “clearer picture” of where Russian state assets are located and what their value is.

“In principle, everything is clear: Russia must pay for the restoration of Ukraine,” said Swedish Prime Minister Ulf Kristersson. “At the same time, it raises difficult questions. This must be done in accordance with EU and international law and there is currently no direct model for this.”

Diplomats from EU countries are meeting on Wednesday to determine the group’s mandate. As soon as this decision is made, they will give him the go-ahead to begin his work. The group will be led by Anders Anlid, CEO of the Swedish National Chamber of Commerce.

As the first anniversary of the Russian invasion draws near, questions arise about how to pay for Ukraine’s rebuilding. Ukraine the economy shrank by more than 30% in 2022 as the war destroyed infrastructure, damaged businesses and disrupted daily life.

The cost of reconstruction and restoration in the country was valued at about $349 billion in a September assessment by the World Bank, the European Commission and the government of Ukraine. But since then, continued fighting will drive up the price.

Earlier this month, a senior EU official estimated that the European Union and Western allies had frozen more than $300 billion in Russian central bank assets that could potentially be used to rebuild Ukraine.

The European Union is also working on the tenth package of sanctions against Russia. European Commission President Ursula von der Leyen said on Wednesday that the bloc will target €11 billion ($11.8 billion) worth of goods using trade bans and technology export controls.

“We are weakening Russia’s ability to maintain its war machine,” von der Leyen said in her speech to the European Parliament. “We have adopted nine packages of sanctions. The Russian economy is shrinking. We need to keep up the pressure.”

— Julia Horowitz shared a story.

The-CNN-Wire
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