Kyiv Calls for Russian Assets ‘Embargo’ After Ceasefire

Andriy Yermak, head of Ukraine’s Presidential Office, said the frozen Russian assets held by Europe should remain in Europe’s hands, where the profit could go towards Ukraine’s recovery.

Yermak did not call for the seizure of the €300 billion ($328 billion) currently held by the West.

Of that €210 billion ($221.5 billion) is held by the EU – the majority by Belgium-based securities house Euroclear.

“Yet one of the most potent tools in Europe’s arsenal is the €300bn in frozen Russian assets held in western financial institutions,” Yermak said in an opinion for The Guardian published on Tuesday, the same day he met with high-ranking US officials in Saudi Arabia on ending Russia’s invasion.

“These resources should remain under embargo, with profits used to sustain Ukraine’s financial recovery. Allowing Russia to reclaim these funds after its war of aggression would have catastrophic consequences,” Yermak added.

At present, profits from the Euroclear-held Russian assets – up to €3.55 billion ($3.9 billion) in two tranches thus far – have been going towards the European Fund for Ukraine, with Belgium previously pledging to also give the taxes levied from the profits to Ukraine.

There were talks in Europe about potentially confiscating the whole sum, though some countries such as France and Germany were reportedly against the idea in fear of setting precedents and harming the currency’s stability.

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In the opinion piece, Yermak also reiterated Ukraine’s desire for a “just and sustainable” peace, which he said could be achieved by solid security guarantees for Ukraine, the enforcement of Western sanctions on Russia, and gaining control of “the frozen Russian assets to enable continued and increased support for Ukraine.”

Yermak headed the Ukrainian delegation for a high-stakes talk with US officials in Saudi Arabia on Tuesday, during which the parties were set to address a potential framework for ending the war in Ukraine and revisit discussions on a resources deal that was initially set to be finalized during President Volodymyr Zelensky’s visit to the US on Feb. 28.

Kyiv is likely to present a partial ceasefire proposal to the US at the meeting, which calls for the mutual cessation of hostilities over the skies and seas, particularly with the use of drones and missiles.

The outcome of the talks remains unclear at the time of publication, though Yermak said it “started very constructively” soon after the meeting commenced.