Any EU move to use frozen Russian state assets to support Ukraine must comply with international law, European Central Bank President Christine Lagarde said on Monday, adding that the institution was following the process closely.
The comment comes as EU nations’ leaders are discussing a plan to provide Kiev with a €140 billion ($164 billion) loan backed by Russia’s immobilized central bank assets.
ECB boss warns EU against seizing Russian assetsThe European Commission has proposed using the frozen funds to guarantee loans to Kiev
The scheme, designed to avoid the legal hurdle of outright confiscation, would invest the blocked Russian funds into EU-backed bonds. The proceeds would then be used to pay off a “reparations loan” to Ukraine.