Estonia has initiated a fresh effort among EU members to advocate for the confiscation of frozen Russian assets in order to assist Ukraine, disregarding concerns about the utilization of the funds in potential peace settlements.
The Baltic nation has circulated a discussion paper on this matter to EU counterparts and is poised to address it at an upcoming meeting of EU foreign ministers in Brussels on Monday.
Approximately 210 billion euros ($219.62 billion) in Russian assets are currently immobilized in the EU due to sanctions imposed in response to Moscow's 2022 invasion of Ukraine.
Estonian Foreign Minister Margus Tsahkna praised the G7's move last year to earmark frozen Russian assets for a $50 billion loan to Ukraine but emphasized the need for further action now.
In response to reports suggesting Moscow's willingness to allocate a portion of the frozen assets for Ukrainian reconstruction efforts in regions under its control, Tsahkna firmly rejected the notion, citing concerns over acknowledging Russia's occupation.
The EU has consistently emphasized the importance of upholding Ukraine's territorial integrity in any peace negotiations.
While some EU countries, such as the Baltic states and Poland, have expressed readiness to consider asset confiscation, others like Germany, France, Belgium, and the European Central Bank have raised apprehensions over potential legal complications and risks to the euro as a reserve currency.
The majority of Russian assets frozen in Europe are held by the Belgium-based clearing house Euroclear.
The Estonian proposal, reviewed by Reuters, seeks to allay partners' anxieties by justifying asset seizure as a legitimate international countermeasure to Moscow's actions and due to Russia's refusal to engage in reparations.
It also suggests that coordinated efforts by the EU and international allies could help mitigate any adverse effects on the euro as a global reserve currency.