US plans to return frozen assets to Russia after signing peace deal
Publications. Politico citing diplomatic sources, reported that the United States intends to to return to Russia its frozen assets after the signing of any peace agreement between Kyiv and Moscow.
According to journalists, Washington has already informed the EU sanctions representative about this decision David O'Sullivan.
The American position is that since the conclusion of the peace agreement legal grounds disappear to further keep these assets under sanctions restrictions - and they must be returned.
The EU maintains the opposite approach
The European Commission's position is now significantly different.
President of the European Commission Ursula von der Leyen continues to actively promote the plan, which provides for Use of proceeds or part of frozen Russian assets to finance Ukraine - including defence, recovery and budget support.
Brussels believes that it is the aggressor state that should compensate for the damage caused by the war, and that Russia's assets are a key tool for this.
Why it creates tension between allies
The differences between the positions of Washington and Brussels open up a new diplomatic front in the discussion on long-term financing of Ukraine.
The main contradictions:
USA: Frozen assets can be returned after the signing of a peace;
EU: The assets should serve as a source of compensation and support for Ukraine;
Belgium: has previously opposed the use of Euroclear assets for loans.
Against the backdrop of Ukraine's financial difficulties, the use of Russian assets is becoming one of the central issues in negotiations between the allies.
Context.
As of today, more than €300bn of Russian assets, most of which are held in Belgian depository accounts Euroclear.
Discussions on the possibility of using them have been ongoing since 2022, but legal and political risks make the implementation of the plans extremely difficult.
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