Bring Russian assets to Ukraine? So far, the EU has not found a legal way

Bei der Ukraine-Wiederaufbaukonferenz, die am Mittwoch und Donnerstag in London stattfindet, sollen vor allem private Unternehmen angeregt werden, zu investieren.

„Es gibt sehr viele deutsche Unternehmen, die sich dort engagieren und auch investieren wollen“, sagte die Vorsitzende des Ostausschuss der deutschen Wirtschaft, Cathrina Claas-Mühlhäuser. Bei der Absicherung von Exportkrediten und Investitionsprojekten sei Deutschland international ein Vorreiter. Im ersten Kriegsjahr 2022 seien durch die Bundesregierung Exportkredite im Umfang von 144 Millionen Euro abgesichert worden. Ein Problem für deutsche Investoren seien die von Kiew verfügten Beschränkungen bei der Devisen-Ausfuhr.
During a visit by a delegation of German entrepreneurs and Economics Minister Robert Habeck to Kiev in early April, the Eastern Committee had declared, demand in Ukraine is high in sectors such as building materials production, Agriculture, logistics and the energy sector. "We believe, that Ukraine is the best location for seed production in Europe”, Bayer company spokesman Matthias Berninger explained to ZDF in Kiev at the time. "We'll be more 60 Invest millions in capacity expansion.”

Kyiv is aiming for, wanting to get involved as an energy supplier for the West after the end of the war. “Ukraine can and will become one of the key suppliers of green electric power and green hydrogen for Europe”, President Volodymyr Zelenskyy said in a video message on Wednesday. 2020 the then Federal Minister of Economics Peter Altmaier already had (CDU) named Ukraine as a future supplier of green hydrogen.
So far, there has been a problem with financing Ukraine. The West has not yet found a suitable legal option, to transfer frozen Russian assets to Ukraine. According to a document, which was available to the Bloomberg news agency on Wednesday, Brussels is examining two options, to the more than 200 Billions of euros in frozen Russian central bank deposits could be transferred to Ukraine.

For the opportunity, to invest the liquid funds of the Russian central bank and to pass on the proceeds to Ukraine, there are significant legal obstacles. Therefore, there will be an extraordinary tax (Windfall Contribution) preferred, at the company, which generate large profits with Russian holdings, should be obliged to do so, to transfer a significant amount to the EU. This could reduce the legal risk, as the EU would not manage the Russian holdings.
Ukraine war: Pentagon suddenly finds $6 billion in arms aid

"Everything, what we are doing in this endeavor, must therefore be absolutely watertight", said Austrian Foreign Minister Alexander Schallenberg. The measure could be challenged in European or American courts. “Would any of these measures be overturned by a judge, that would be a diplomatic and economic catastrophe”, warnte Schallenberg.
The President of the European Commission, Ursula von der Leyen, said in London on Wednesday, that the Union would present a proposal for the use of these stocks before the mid-July summer break. More than half of assets consist of cash and deposits, while a "significant portion" of the remainder is invested in securities with maturities in two to three years.
The US Department of Defense reported a spectacular "false booking" on Tuesday evening. The Pentagon announced, that it is due to accounting errors 6,2 billions of dollars more than originally planned for arms deliveries to Ukraine.
In the fiscal year 2022 got around to the Department of Defense 2,6 billion US dollars and in the fiscal year 2023 for more 3,6 billed billions of dollars, Deputy spokeswoman Sabrina Singh told reporters at the Pentagon Tuesday night. The military services accounted for arms shipments to Ukraine at “replacement cost” rather than “net book value.”. The correction is now "final". The money will flow back into the budget, provided for Ukraine.
US President Joe Biden has always declared, that the United States and its allies will support Ukraine against the Russian invasion for as long as necessary. However, voices are growing louder from sections of the Republican Party, who criticize the rising costs and the indefinite timeframe of arms deliveries. The sudden "find" could be an easy way out for the American government.
The member states of the EU agreed on Wednesday, their joint military aid fund for more 3,5 increase billions of euros. Since the Russian invasion of Ukraine, the EU countries have around 5,6 billion euros provided.

The Russian government meanwhile raised serious allegations towards the West. “The leadership of the Ukrainian Armed Forces is planning, Russian territory, including Crimea, with HIMARS- and attack Storm Shadow missiles", Defense Minister Sergei Shoigu said on Tuesday evening, according to AFP, at a meeting with military officials. Shoigu threatened "immediate" reprisals: "The deployment of these missiles outside the special military operation zone means the full involvement of the United States and Britain in the conflict and will prompt immediate attacks on decision-making centers in Ukraine.", said Shoigu. In an attempted attack by Ukraine, the Russian military shot down three drones outside of Moscow on Wednesday, said the Ministry of Defense.


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