The head of the ECB criticizes the US’ plans regarding the frozen assets of the Russian Federation.

The President of the European Central Bank, Christine Lagarde, spoke critically of the idea to use more than €260B in frozen Russian assets to finance military aid to Ukraine. She warned about the legal risks of violating international law. As the FT points out, Lagarde’s position indicates a transatlantic split on this topic.

“I’ve seen four different schemes or proposals to get around what many lawyers or advocates see as a very serious legal hurdle that can be seen as a violation of the international legal order. Going from freezing assets to confiscating them to disposing of them is what’s needed to consider very carefully,” Lagarde said.

After an inconclusive debate on April 17, the G7 said: “We reaffirm our determination to make Russia pay for the damage it has done to Ukraine. Russian sovereign assets in our jurisdictions will remain frozen for as long as possible.”

Lagarde said she had “no doubt” that Russia should pay for the restoration of Ukraine.