EU Considers Confiscating €260 Billion in Frozen Russian Assets to Aid Ukraine, Dombrovskis Proposes

Dec 21, 2024, 02:30 AM

The European Union's top economic official, Valdis Dombrovskis, has suggested that the EU should consider confiscating frozen Russian central bank assets, valued at €260 billion, to provide compensation to Ukraine. This proposal comes amid rising tensions and despite warnings from the European Central Bank about potential risks to financial stability. Dombrovskis emphasized the need for any such action to be legally justified to withstand possible legal scrutiny. Meanwhile, German Chancellor Olaf Scholz has expressed strong opposition to the idea of confiscating these assets, reacting with irritation when Polish President Andrzej Duda brought up the topic again, an idea previously rejected by Berlin. Scholz's reaction highlights a division within Europe on how to handle the frozen Russian assets.