Europe Funds Ukraine Without Confiscation

The article discusses Europe's development of a new mechanism to invest the profits generated from Russian assets that have been frozen since sanctions were imposed on Moscow due to the war in Ukraine in 2022. Europe intends to use the benefits and returns from these frozen Russian assets, amounting to around 8 billion euros since the start of the sanctions, to fund support for Ukraine, while maintaining the original ownership of the assets and not confiscating them directly. This move raises legal risks and potential Russian retaliation, as Moscow has warned that it would take countermeasures if Europe seizes its assets or uses the benefits from them. There is also a possibility that Moscow might plan to confiscate European assets on its territory in response. So far, Europe has relied on this mechanism to finance its support for Kyiv, but clear legal disagreements remain regarding the ownership of the assets and the use of their returns.

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