German minister confident a way will be found to use Russia’s frozen assets

BERLIN – German Finance Minister Lars Klingbeil said on Oct 10 that he is confident European Union countries will find a solution to use Russian central bank assets to help Ukraine.

“The political goal is clear: We want to use the frozen Russian assets, but there are still quite a number of questions that need to be clarified internally,” said Mr Klingbeil in Luxembourg ahead of a meeting of European finance ministers.

Under international law, sovereign assets cannot be confiscated.

Mr Klingbeil said “legally secure ways” need to be found but added that he is sure this goal will be achieved.

Meanwhile, European Central Bank (ECB) president Christine Lagarde said on Oct 6 that any European Union decision on using frozen Russian state assets to help Ukraine

must follow international law

. She added that the ECB is “very attentive” to the process.

The EU is searching for a way to finance Ukraine’s defence and reconstruction with some of the €210 billion (S$317 billion) worth of Russian sovereign assets immobilised in the West after Moscow’s invasion of Ukraine in 2022.

As outright confiscation would be illegal, the bloc’s political leadership is working on a plan to invest the Russian cash in zero-coupon bonds issued by the European Commission with guarantees from EU governments. REUTERS