Three Countries Urge EU to Resist US and UK Pressure, Avoid Russian Asset Confiscation

The European Union (EU) and G7 froze roughly €300 billion of Russia's foreign currency reserves over its military operation in Ukraine, with about €200 billion euros held in the EU. Leaders have mooted using these assets to fund Ukraine's war effort, but the European Central Bank warns of potential risks to the euro's reputation.

China, Saudi Arabia, and Indonesia are pushing the EU to reject pressure from the US and UK to confiscate over €200 billion ($216 bn) of Russian state assets.

The three countries are worried that the plan “would create a precedent” — implying they could be targeted next.

They argue that confiscating Russian assets would extend the conflict and coerce them into siding with a party against their will, US website Politico writes.

EU countries are hesitant to seize Russian assets frozen in Belgium to aid Ukraine due to legal consequences and the risk of destabilising the eurozone. Washington and London are exploring other avenues to fund Ukraine’s failing war in the face of opposition from the US Congress.

"Those who are trying to initiate this, and those who will implement it, must understand that Russia will never leave those who did this alone," Russian presidential spokesman Dmitry Peskov told reporters. "And it will constantly exercise its right to a legal battle, internationally, nationally, or otherwise. And this, of course, will have — both Europeans and Americans understand this very well — it will have legal consequences for those who initiated and implemented it."

The EU has presented a proposal aimed at skimming off interest payments on Russian assets, which amount to €2.5-3 billion annually, adding that 90 percent of those funds would be used to buy weapons for Ukraine.

Russia has reiterated that any action to confiscate its frozen assets would infringe upon international law and attract legal consequences.

Russian President Vladimir Putin has denounced the West’s asset seizures as an "unseemly business" and stated that “stealing other people’s assets has never brought anyone good.”

However, some European leaders warn of financial fallout from the scheme. The German government and the European Central Bank have said the seizure could undermine investors' trust in the bloc's financial system.