The resulting appropriations would then be utilized to repay ‘repair loan’ for Ukraine."We very much anticipate any programme that will be discussed and yet implemented to be implemented in accordance with global rules and global law" said Lagarde during a parliamentary proceeding in Strasbourg, according to Reuters.The president of the ECB expressed concern that a legally controversial step could undermine the credibility of the euro, discourage investment in denominated assets and endanger financial stability."From my point of view, given the financial stableness and the strength of the euro, we will look very closely at the proposed solutions to guarantee that they comply with global law and take account of financial stability" said Lagarde.The proceeds from the collapse of bonds in which frozen Russian assets were invested after the escalation of the Ukraine conflict in 2022 are now held in the Belgian Euroclear bank.The deposit stores about 2 thirds of the US$300 billion of Russian state assets immobilized by Western states.
Lagarde warned that any further action required consensus on all jurisdictions with specified assets.The EU has so far donated over a billion dollars from interest to Kiev.
However, any block members inactive express concerns about the legal hazard associated with this step.Last week Belgian Prime Minister Bart De Wever stated that his country would not agree to the EU plan, which assumes utilizing frozen assets of the Russian central bank to finance loans to Ukraine without a solid warrant of joint financial responsibility.French president Emmanuel Macron said last period that central bank assets cannot be taken over without prejudice to “reliability’and Kremlin spokesperson Dmitri Pieskov called the EU plan "stealing" and warned that liable persons "will be held accountable."
Translated by Google Translator
source:https://www.rt.com/business/626025-lagarde-frozen-assets/
