Legal basis matters for moves on Russian assets, Lagarde says

"This is not for the European Central Bank to debate, but I would certainly submit that the international law basis on which any decision is made will matter as far as other investors are concerned," she told a press conference after the bank's rate-setting meeting. "It is, I'm sure, an element that will be taken into account by those whose job it is to make those ultimate decisions," she added.

European Central Bank President Christine Lagarde said on Thursday she expected any decision by Western countries on what to do with currently-frozen Russian assets would take into account international law. European leaders want to use $300-350 billion of Russian assets - mostly European, U.S. and British government bonds - to help rebuild Ukraine, but are yet to agree on how to avoid legal challenges or set a problematic international precedent.

The ECB has long raised concerns about how such a move could affect investors' willingness in future to hold assets in euros. "This is not for the European Central Bank to debate, but I would certainly submit that the international law basis on which any decision is made will matter as far as other investors are concerned," she told a press conference after the bank's rate-setting meeting.

"It is, I'm sure, an element that will be taken into account by those whose job it is to make those ultimate decisions," she added. (Writing and reporting by Mark John; Editing by Toby Chopra)

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