Japan refuses to support confiscation of Russian assets

Japan refuses to support EU plan to confiscate Russian assets

Japan has refused to support the European plan to confiscation of frozen Russian assets, reports Politico. Tokyo has made it clear to the G7 countries that cannot use about $30 billion, who are under arrest in Japanese jurisdiction.

The main reason is legal restrictions, The new law does not allow for the reallocation of these assets to finance loans or aid to Ukraine.

EU position and difficulties in negotiations

The European Commission is trying to persuade member states to agree on a mechanism for the full use of frozen Russian assets for the 18 December summit.

However, the process is moving slowly due to a number of concerns:

• Belgium fears that it will become the main target of possible lawsuits from moscow, The largest volume of Russian assets is placed in Euroclear in Brussels.

• Some EU countries want additional legal guarantees.

• The issue of confiscation is still a source of disagreement among some G7 members.

Context.

Discussions about Russian assets have been going on for more than a year.
Initially, the EU used only income from assets, but now more and more states are supporting the idea complete confiscation of capital.

Japan's position makes it difficult to agree on a common position between the G7 and the EU ahead of the final discussions in December.