EU leaders have been debating for months how to use immobilized Russian assets to finance Ukraine while remaining in compliance with international law that prohibits outright confiscation.
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Most leaders want to put to work some 210 billion euros ($244 billion) of Russian sovereign assets immobilized in Europe, but this will likely require some guarantees to Belgium, where most of the funds are held.
“The scheme that has been put in place and which is going to be debated at the next European Council (meeting) is … the closest I have seen to something that is in compliance with the international law principles,” Lagarde told a Financial Times event.
“It’s our duty as Europeans to continue to support, defend and act in favour of Ukraine,” Lagarde added.
Lagarde, who has no direct role in the process, has long expressed concern about using Russian assets and said the ECB is keen for any outcome to respect international law, otherwise the global reputation of the euro could be compromised.
“It’s a very, very exceptional case, and it does not remove the title of Russia to the assets,” Lagarde said of the current proposal.
Lagarde also said the EU needed to explain what was happening and make clear that the bloc was not engaging in a practice of confiscating sovereign assets simply because it suited its interest.
Reporting by Balazs Koranyi
Editing by Peter Graff
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