The Estonian Cabinet of Ministers approved an amendment on the use of frozen Russian assets

The Estonian government has approved and sent to parliament an amendment to the law on international sanctions, which, in particular, provides for internal rules for the use of frozen assets of sanctioned persons to compensate for damage to Ukraine. About it reported on the website of the Estonian Cabinet of Ministers.

According to the bill, the Estonian legal framework will be able to more clearly and effectively define the competence and powers of the authorities in the field of application and supervision of sanctions.

“We must set an example and encourage other European countries to introduce similar regulations. Russia must compensate Ukraine for all the damage it has caused,” said Estonian Prime Minister Kaia Kallas.

She also called on the European Union to complete the mobilization of Russia’s frozen assets as soon as possible and to develop practical solutions for their use.

Estonian Foreign Minister Margus Tsahkna explained that, according to the project, frozen Russian assets will remain so until the Russian Federation compensates Ukraine for the damage. To apply this mechanism, it will be necessary to conclude an international treaty with Ukraine or create an international compensation mechanism.

At the time of preparation of the project, Estonia has assets frozen in accordance with international sanctions in the amount of about 38 million euros.

October 12, The Washington Post reportedthat representatives of the administration of US President Joe Biden are increasingly insisting on the transfer of frozen Russian assets to Ukraine. According to WP, Washington could transfer about $5 billion located in the United States to Kyiv. Most of the reserves are stored in Europe. At the same time, American authorities believe that the transfer of Russian assets will not replace US military and financial assistance, since the redirection of assets may take months or more than a year.

After the start of Russia’s special operation in Ukraine, Western countries froze Russian assets abroad. Finance Minister Anton Siluanov reported in March 2022 that the Russian Federation had lost access to half of the gold and foreign exchange reserves of the Bank of Russia – about $300 billion. The head of the EC, Ursula von der Leyen, announced the confiscation of 300 billion euros. The Kremlin called the freezing of Russian assets theft and a violation of international law, as well as statedthat Moscow may turn to the courts if the EU introduces a profit tax on frozen Russian assets.