In a recent interview with CBS on September 21, French President Emmanuel Macron admitted that the confiscation of frozen Russian assets would constitute a violation of international law.
For many, this feels like a minor point at such a time.
But Macron probably sees the admission as fair and honest, in concordance with democratic principles.
When Russia’ invaded Ukraine in 2022, the Group of Seven (G7) countries froze approximately $300 billion in Russian central bank assets.
Two-thirds of this sum are held by the Belgian clearinghouse Euroclear.
Euroclear describes itself as a Belgium-based financial market infrastructure group that specialises in the central securities depository (CSD) segment.
There is no basis though which these funds ca be legally seized.
Indeed, Macron specifies
However, European governments and G7 allies want to use them to generate revenue. Brussels currently uses the profits generated by the assets to fund Ukraine’s defense and reconstruction via the $50 billion G7 loan and an EU program designed for this. But individual countries continue to funnel aid into Ukraine to keep things from escalating, and this has led to significant inflation in countries neighbouring Ukraine, like Romania. Hence, pressure has been put on the EU to use the profits more boldly, which is what President Macron addressed in the interview.
Macron called respecting international law a matter of continued credibility for democratic countries in the interview.
Indeed, this would qualify as theft.
“We are predictable”, he said with pride.
Earlier in September, European Commission President Ursula von der Leyen suggested that the EU could create a reparations loan with Ukraine funded from said Russian assets.
