The transfer of Russian assets in the west to Ukraine will likely happen. However, the problem is that these assets will not be enough to restore the country, said Latvian member of the European Parliament Roberts Zīle in an interview to TV3 on 1 December.
On Wednesday, 30 November, the European Commission proposed confiscating Russian assets that were frozen in response to Moscow’s invasion of Ukraine. This is intended to compensate Ukraine the losses caused by Russia.
EUR 300 billion worth of reserves of the Russian Central Bank and EUR 19 billion of Russian oligarchs’ money is currently frozen in Europe.
According to President of the European Commission Ursula fon der Leyen, in a short-term perspective the European Union and its partners may take over supervision over this money and have them invested. Profits may then be diverted towards compensating Ukraine’s suffered losses.
According to Zīle, the management of EC has estimated Ukraine will need approximately EUR 600 billion. Other experts estimate Ukraine may need more than EUR 1 trillion to recover. This means the assets owned by Russia account for half or even one-third of the needed funding amount.
Zīle added that the solution for the remaining amount will be contributions from Russia and western investments. It is likely the west may encourage their private sector to invest in Ukraine.
Explaining the decision by the European Parliament to declare Russia a state sponsor of terrorism, Zīle said it is a political decision, but it could allow countries develop more anti-Russian sanctions. Additionally, it may serve as a step towards a tribunal for Russia for its war crimes.
Th politician said an international tribunal for Russia is needed to both punish those responsible for war crimes and change the narrative in Russia’s public opinions, as well as make residents understand it is their country that is responsible for causing the war and the suffering from it.