EU Considers Sanctions Twist to Benefit Austrian Bank

The European Union is contemplating unfreezing assets linked to Russian oligarch Oleg Deripaska, enabling Austria's Raiffeisen Bank to reclaim damages ordered by a Russian court. This contentious proposal faces criticism among EU members, fearing it might legitimize Russian court actions against EU sanctions.

The European Union is weighing the possibility of unfreezing assets tied to Russian oligarch Oleg Deripaska, potentially allowing Austria's Raiffeisen Bank International to recoup damages imposed by a Russian court, according to EU diplomats.

This move, as reported by the Financial Times, is part of the ongoing discussion around the 19th package of sanctions against Moscow. Austria, facing pressure to compensate Raiffeisen for a substantial fine, requested the provision amid criticism from other EU governments. This decision will be deliberated at an EU ambassadors' meeting in Brussels.

The plan has sparked concerns among diplomats, who argue it could inadvertently legitimize Russian courts' retaliation against EU sanctions and possibly pave the way for similar actions by other oligarchs.

(With inputs from agencies.)