There are a number of legal mechanisms that could allow frozen Russian assets to be confiscated for the benefit of Ukraine, including transferring the assets into a dedicated special-purpose mechanism.

Source: Kęstutis Budrys, Lithuanian Foreign Minister, ahead of an informal meeting of the EU foreign ministers in Copenhagen on 30 August, as reported by European Pravda

Details:Frozen Russian assets could be placed in a special-purpose company for subsequent use in support of Ukraine.

"Lithuania proposes to move forward and quickly with the seizure of the frozen assets. That's the thing we were stuck on for too long," Budrys said.

He noted that the EU has "at least a couple of legal decisions on how to organise it", while acknowledging "there are certain risks related to it".

Budrys explained the process: "And we have to take the money, assets and central bank assets (of Russia – ed.) from Euroclear (the Belgian depository holding over €200 billion of frozen Russian assets – ed.), put it into one of the options, into a special purpose vehicle, and implement it through the legal process."

"And it can be provided as guarantees in the form of loans to Ukraine, with some conditionality of reparations being paid by Russia," he added.

Budrys expressed confidence that "this is how we will share the responsibility and the costs of the risks".

Background:

• As reported by European Pravda, Estonia has also insisted on the confiscation of frozen Russian assets and the transfer of funds to Ukraine.
• "We are advancing work on Russian frozen assets to support Ukraine’s defence and reconstruction," European Commission President Ursula von der Leyen stated the day before.
• Earlier reports indicated that the EU could create a fund to facilitate the transfer of nearly €200 billion in Russian assets for Ukraine’s reconstruction.

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