Using Frozen Russian Assets to Fund Ukraine Threatens Euro's Reputation - ECB

MOSCOW (Sputnik) - The possible use of frozen Russian assets to finance Ukraine by Europe could dent the euro's reputation as a safe currency, Vice-President of the European Central Bank (ECB) Luis de Guindos has said.

"Our position on utilising the dividends and interest from the frozen assets is clear. First: this should be a global decision, ideally involving all members of the G7. In addition, we have to be careful because this could lead to reputational damage. We have to look beyond this conflict in isolation, and there could be implications for the euro as a safe currency," de Guindos said in an interview with De Standaard and La Libre Belgique published on Wednesday.

The ECB should consider the long-term reputation of the euro since it is "the second most important" currency in the world, the ECB vice-president added.

After the beginning of Russia's military operation in Ukraine on February 24, 2022, Western countries imposed comprehensive sanctions against Moscow, including freezing Russian assets worth approximately 300 billion euros ($329 billion). Almost 200 billion euros of which are held in the European Union, mostly on accounts at Euroclear, a European central securities depository.