Estonian Prime Minister Kaja Kallas has advocated for the confiscation of assets belonging to Russia that are currently frozen within the European Union, alongside the imposition of tariffs on Russian goods. In an interview with “Welt am Sonntag”, Kallas stated that Moscow should bear responsibility for the costs associated with the conflict in Ukraine, rather than burdening European taxpayers. She proposed that, should reconstruction funding prove insufficient, tariffs on Russian products could be implemented post-conflict.
The European Union froze approximately €210 billion in assets held by the Russian Central Bank in 2022, the vast majority of which are held by the Belgian securities clearing house Euroclear. The European Commission, under President Ursula von der Leyen, is currently transferring the interest generated by these assets to Ukraine. While some European governments are keen to provide Kyiv with the full sum, others, including Germany, have voiced concerns that doing so would violate international law and erode investor confidence in European financial markets.
Portuguese Prime Minister António Costa, President of the European Council, echoed these reservations, emphasizing the importance of respecting international legal frameworks and maintaining investor trust in the European marketplace. Costa indicated that ongoing evaluations are focused on strategies to maximize the profits derived from the frozen assets while ensuring their preservation for potential use in supporting Ukraine’s reconstruction efforts following a peace agreement.
