EU's Josep Borrell proposes confiscating Russian reserves to rebuild Ukraine

Amid the ongoing Russia-Ukraine war, the European Union's top official has proposed seizing frozen Russian foreign exchange reserves to cover the expenses of rebuilding the war-torn country. While speaking to the Financial Times on Sunday, Josep Borrell, the EU’s high representative for foreign policy, highlighted how the United States utilised the frozen money of Afghanistan to pay the compensation to the victims of terrorism and for humanitarian aid for the country. He stressed it sounds logical to use the Russian money for rebuilding the country destroyed by war.  

"I would be very much in favour as it is full of logic. We have the money in our pockets, and someone has to explain to me why it is good for the Afghan money and not good for the Russian money," Financial Times quoted Josep Borrell Fontelles as saying.

Earlier this year, the US had allocated $3.5 billion of frozen Afghan assets to the victims of 9/11, despite a repetitive appeal from the former Afghan President Hamid Karzai and the Taliban leaders. Notably, the US has frozen the assets as a part of a pressure campaign aimed at getting Afghanistan’s new rulers to respect the rights of women and minorities.

According to FT, the EU officials have been examining whether the Russian reserves could be diverted for the construction of Ukraine. However, the report noted that the bloc officials have not come to any conclusion. When asked whether the US could utilise the money in rebuilding Ukraine, US Treasury secretary Janet Yellen told FT that it needs great coordination with allies and also affirmed it requires legislation in the US.

"Asset confiscations are sometimes possible following a criminal conviction, but that requirement would not be satisfied just because someone was targeted with sanctions. This is one of the most important political questions on the table: who is going to pay for the reconstruction of Ukraine?" Borrell told FT.

Russia-Ukraine war

It is pertinent to mention here that Russia initiated a full-fledged war against Ukraine nearly two days after Vladimir Putin signed a decree recognising the independence of breakaway regions Donetsk and Luhansk. Since then, it has been bombarding several cities in Ukraine, resulting in the killing of thousands of civilians.

Despite repetitive warnings from the West, Russian Foreign Minister Sergei Lavrov, during an interview with Russian media said, "Russia is not in the mood to wrap up the ongoing "military operations" in accordance with Victory Day, which is also an anniversary day to celebrate Nazi Germany's surrender to allied forces."

(Image: AP)