The EU supports the transfer of profits from frozen Russian assets to Ukraine, but there is a lack of economic power for confiscation.

On January 29, the ambassadors of the EU gave their support to a proposal to use the profits from the frozen assets of the Russian Federation to help Ukraine. The EU must approve the first step, separating proceeds from frozen holdings into a separate account. Second, they must agree on the money transfer to Ukraine’s account. The EC approved this decision and stated they are working on the next steps.

According to FT, the EU is reluctant to use its economic power with Russia’s gold and foreign exchange reserves.

“Most of the EU political system insists on taking this issue beyond the legitimate options, using the most conservative legal analysis and diverting political attention to whether it is worth taxing excess profits from managing Russian assets received by EU institutions,” the article says.

Therefore, the question arises: is it in the interests of Europe to use its financial leverage to force Russia to compensate Ukraine for damages?

“Willingness to wield economic power is a necessity. If it is done, it will be good for the world,” the publication says.