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→Seizure of Russian assets
The move was blocked as no one was ready to accept the potential [[liability]] for it. Not only [[Belgium]], but also [[Germany]] and other [[fiscal conservative]] states, have warned that such a move would endanger their own [[asset]]s. Russia has announced that it will retaliate against any confiscation of its [[money]]. It threatens to confiscate whatever [[European]] companies own or hold in Russia. Those companies would then have to sue their own [[government]]s for cover of their losses.
The move was blocked as no one was ready to accept the potential [[liability]] for it. Not only [[Belgium]], but also [[Germany]] and other [[fiscal conservative]] states, have warned that such a move would endanger their own [[asset]]s. Russia has announced that it will retaliate against any confiscation of its [[money]]. It threatens to confiscate whatever [[European]] companies own or hold in Russia. Those companies would then have to sue their own [[government]]s for cover of their losses.
Former head of the German [[Blackrock]] office Fuhrer [[Friedrich Merz]] had a new idea. In a ''Financial Times'' op-ed Merz claimed:<ref>https://archive.ph/hP5Ej#selection-1839.0-1852.2</ref>
"In the future, investors are unlikely to place their assets in Euroclear, knowing they could be so easily liquidated without trial or due process, just as Russian assets are being liquidated.," said Georgy Ostapkovich, academic supervisor at the Center for Market Studies at the Higher School of Economics.
The authority of Western countries and Western finance houses will be undermined. "The likely consequence of such action by [[EU]] member states will be Russian confiscation of all assets of these countries, their companies and their citizens in the [[Russian Federation]]," according to [[international relations]] and Russian affairs analyst [[Gilbert Doctorow]]. "That may create a [[political]] storm when the companies seek legal redress against their governments."
Euroclear has expressed concerns over its future and the future of the [[euro]] [[currency]] if the Russian [[sovereign]] assets are seized by the EU. [[Belgian]] [[Prime Minister]] [[Bart De Wever]] has asked other EU leaders for guarantees they will share the risks. Former head of the German [[Blackrock]] office Fuhrer [[Friedrich Merz]] had a new idea. In a ''Financial Times'' op-ed Merz claimed:<ref>https://archive.ph/hP5Ej#selection-1839.0-1852.2</ref>
{{quotebox-float|[[Germany]] has been, and remains, cautious on the issue of confiscating the Russian central bank's assets that are frozen in [[Europe]], and with good reason. There are not only questions of [[international law]] to consider, but also fundamental issues concerning the [[euro]]'s role as a global [[reserve currency]]. But this must not hold us back: we must consider how, by circumventing these problems, we can make these funds available for the defence of Ukraine.
{{quotebox-float|[[Germany]] has been, and remains, cautious on the issue of confiscating the Russian central bank's assets that are frozen in [[Europe]], and with good reason. There are not only questions of [[international law]] to consider, but also fundamental issues concerning the [[euro]]'s role as a global [[reserve currency]]. But this must not hold us back: we must consider how, by circumventing these problems, we can make these funds available for the defence of Ukraine.
The EU bonds would cover Euroclear's risk against Russian litigation while the cash in the SPV could be invested more profitably than overnight deposits in the ECB and thus generate a higher return for Ukraine.</ref>https://www.msn.com/en-gb/news/world/explainer-how-will-the-west-use-russia-s-frozen-assets/ar-AA1NdSz7}}
The EU bonds would cover Euroclear's risk against Russian litigation while the cash in the SPV could be invested more profitably than overnight deposits in the ECB and thus generate a higher return for Ukraine.</ref>https://www.msn.com/en-gb/news/world/explainer-how-will-the-west-use-russia-s-frozen-assets/ar-AA1NdSz7}}
Why would this scheme, as Merz say, 'require budgetary guarantees from member states'? That mean that the [[taxpayer]]s of the EU will have to pay when Russia wins its [[litigation]] in court. It is, in the end, the people of Russia's money. Any attempt to seize is outright [[thievery]].
Why would this scheme, as Merz say, 'require budgetary guarantees from member states'? That mean that the [[taxpayer]]s of the EU will have to pay when Russia wins its [[litigation]] in court. It is, in the end, the people of Russia's money. Any attempt to seize is outright [[thievery]].
The European Central Bank has also voiced concerns over any asset seizure. At a virtual meeting of deputy finance ministers on September 30, 2025 it urged the [[European Commission]] to prove the move would not undermine the euro’s credibility.
==See also==
==See also==