Prominent leaders urge that frozen Russian assets be transferred to Ukraine

Russian assets frozen in the West in the amount of around 300 billion euros should be utilized to compensate Ukraine and Ukrainians, prominent world leaders say.

An open letter to world leaders and governments, which was published in the respected British publication Financial Times, asks for this.

More than 30 prominent international figures, including former heads of European governments, distinguished American diplomats, members of the European Parliament, the Chairman of the Munich Security Conference, the former President of the World Bank, representatives of Harvard, Stanford, Columbia, and Yale universities, and members of the Atlantic Council, a leading US think tank, signed the appeal, which was initiated by Arseniy Yatsenyuk, Chairman of the Kyiv Security Forum, former Ukraine’s Prime Minister.

“We call on the leaders of the Group of Seven and the European Union to approve the long-awaited decision to allow Ukraine to use sovereign Russian assets and direct them to compensate Ukraine and Ukrainians for the damage caused to them,” said the statement.

The authors emphasize that as direct victims of Russian aggression, Ukrainians have the right to full compensation from Russia for the losses they have incurred.

“Until Russia returns to the path of compliance with international law and fully pays Ukraine and Ukrainians the legally due reparations, Ukraine and Ukrainians should become the recipients of Russia’s sovereign assets,” the authors write.

Currently, the overall value of frozen sovereign Russian assets is around €300 billion, with approximately €200 billion in the European Union.

In this context, the undersigned leaders urge to take all necessary steps, including legislative ones, to ensure these funds are transferred to Ukraine.

“Russia’s sovereign assets should be deposited into a special Ukraine Recovery Fund to be managed by representatives of the Group of Seven states in consultation with the Government of Ukraine,” according to the statement.

According to World Bank projections, the cost of rebuilding Ukraine has already reached $411 billion in February 2023, which is rising by the day.

“Russia’s sovereign assets of €300 billion cannot compensate for the full extent of the damage caused but will make a significant contribution to the rescue and rebuilding of a democratic, sustainable, European Ukraine,” according to the report.

On 30 June, EU leaders supported the idea of introducing a windfall profits tax on the assets of the Russian Central Bank to help rebuild Ukraine.

The EU leaders decided in principle to transfer billions of euros to Ukraine, which were received from the investment of Russian assets frozen in the EU.