Western countries froze 260 billion euros of Russian state assets after the invasion of Ukraine. This money can be paid to Ukraine in tranches as an advance payment before Russia's compensating for its aggression.
Arrested Russian assets will be transferred to Ukraine
According to the FT, US officials suggested that the seized assets could be transferred to Ukraine in tranches, for example, through the World Bank or the European Bank for Reconstruction and Development.
This is seen as an "advance payment" before the compensation to Ukraine that Russia must eventually pay under international law for its aggression, the publication notes.
By the way, Washington did not publicly support the confiscation of frozen assets, but agreed to it privately. In a recent G7 discussion paper presented by US officials, it was called a "countermeasure" permitted by international law that would "encourage Russia to stop its aggression".
According to the document, such a step would be considered a legitimate response to Russia's illegal invasion of Ukraine if it is taken by states that have been "affected" and "particularly affected" by its aggression. This could include Ukraine's allies who financed its economy and armed forces during the war.
Where Russian assets are stored
According to a European Commission document seen by the Financial Times, last year, about 260 billion euros of assets of the central bank of the Russian Federation were frozen in the G7 countries, the EU and Australia.
Most of this amount - around €210 billion - is held in the EU, including cash and government bonds denominated in euros, dollars and other currencies.
By comparison, the US froze only a small amount of Russian state assets: about $5 billion.
In Europe, the bulk of the assets — about €191 billion — are held at Euroclear, the central securities depository headquartered in Belgium. According to the French Ministry of Finance, France has frozen the second largest amount, about €19 billion. Germany has frozen approximately €210 million.
