EU's Economic Counteroffensive: The Russian Asset Debate

The EU plan to utilize frozen Russian central bank assets to support Ukraine has sparked accusations from Russia, alleging economic crimes on a global scale. Approved by EU lawmakers, this controversial move aligns with the G7's broader financial strategy to assist Ukraine amid ongoing tensions.

The European Union's recent decision to leverage frozen Russian central bank assets for funding Ukraine has stirred significant controversy, with Russia labeling the move as an economic crime. On Tuesday, Kirill Logvinov, Russia's acting permanent representative to the EU, voiced strong objections at what he terms as a monumental breach of economic ethics.

EU lawmakers, nevertheless, advanced the controversial measure, approving the use of immobilized Russian assets to facilitate loans up to 35 billion euros (approximately 38 billion US dollars) to assist Ukraine. This decision represents a notable shift in the economic dynamics between the EU, Russia, and Ukraine amidst the ongoing conflict.

The initiative aligns with the Group of Seven major Western powers' overarching strategy, which includes a provision for an overall loan of 50 billion dollars to Kyiv. This loan is projected to be financed by the profits garnered from the strategically frozen Russian assets, immobilized in the West since Moscow's military actions in Ukraine commenced in February 2022.

(With inputs from agencies.)