ECB warns against using profits from frozen assets of the Russian Federation due to risks for the euro – Kommersant

Using profits from frozen Russian assets to rebuild Ukraine could undermine confidence in the euro as a world currency. This, according to sources Financial TimesThe European Central Bank (ECB) has warned the European Commission.

According to the ECB, the use of interest income from frozen Russian assets may encourage other central banks to turn their backs on the euro, especially if the decision is made unilaterally – without other G7 countries.

“The implications could be significant: it could lead to a diversification of reserves from euro-denominated assets, higher funding costs for European sovereigns and trade diversification,” the ECB said in a note.

European Commission earlier informedthat, according to a legal opinion, the EU can work with the frozen state Russian assets in order to further use them for the restoration of Ukraine. At the same time, the EU does not see a legal basis for the confiscation of Russian assets. Belgium in May declared about plans to transfer €92 million of such revenues to Kyiv. The profit of the European depository Euroclear from the frozen Russian assets for the first quarter of 2023 amounted to €540 million.

Leonid Uvarchev