Bloomberg: Estonia Urges EU To Seize Russian Central Bank Assets This Year

So that it is not “too late”.

Estonia called on the European Union to seize the assets of the Russian Central Bank this year so that it is not “too late,” writes Bloomberg.

Jonathan Vseviov, Secretary General of the Ministry of Foreign Affairs of Estonia, said this in an interview with the publication.

“It is important that the assets are confiscated before the end of the year or, preferably, before the US elections. If we wait too long, it may be too late,” the media quoted.

It is noted that EU leaders sounded the alarm after Donald Trump's comments. His talking points revived concerns about American commitment to NATO. Trump's meddling in immigration policy in Congress has also jeopardized $60 billion in U.S. aid to Ukraine that is desperately needed to counter Russia's military campaign.

As Russia's invasion approaches the two-year mark, the EU and G7 have frozen more than €250 billion of Russian Central Bank assets. Now they are discussing how this money can be used to help restore Ukraine. The vast majority of the assets are held in Europe at the Euroclear clearinghouse in Belgium, where they generated around €4.4 billion in profits in 2023.

The EU is working on plans to apply a windfall tax to those earnings, with some member countries and officials hoping to reach a final agreement by Feb. 24, the second anniversary of the Russian invasion, Bloomberg writes. It is unclear whether the deadline was met as several member states stalled the process, citing legal difficulties, the publication said.

“Meanwhile, the G7 has vowed to make Russia pay for rebuilding Ukraine and keep sanctioned assets frozen until it does so. Several countries, including France and Germany, have so far resisted the option of outright confiscation of frozen assets due to legal issues and the implications it could have for the stability of the euro. At a technical level, the G7 is studying the legal feasibility of using assets as collateral to raise funds for Ukraine,” the material says.

That said, Estonia is already working on domestic legislation that, if passed, would allow it to eventually confiscate any Russian assets frozen in the Baltic country.

According to the Secretary General of the Estonian Foreign Ministry, Vseviov, the war in Ukraine has reached a “plateau on the front line and in politics,” which makes Russian President Putin believe that time is on his side.

“Russia is likely to use its advantage in ammunition reserves and could occupy large areas of Ukraine if important aid is not delivered to Kyiv,” the publication quotes a report from the Estonian Foreign Intelligence Service.