Germany is ready to seize Russian assets to help rebuild Ukraine

Germany is open to using billions of euros of frozen Russian assets to help Ukraine rebuild if legal issues are resolved and allies follow suit.

Bloomberg writes this, citing people familiar with the discussions.

Chancellor Olaf Scholz's government supports Ukraine's demand for reparations for the war but has not yet taken an official position on seizing Russian state assets because of disagreements in the ruling coalition.

If Berlin can solve its own problems, it could give new impetus to discussions in the European Union and put pressure on the U.S. to seize assets, such as central bank reserves, that have been frozen in response to the Russian invasion.

German Foreign Minister Annalena Berbock insists that seizing at least part of the frozen assets should be an option, according to the paper.

Finance Minister Christian Lindner, who heads the business-oriented Free Democrats, is more cautious. He is concerned that confiscating the assets of the Russian central bank could set a dangerous precedent and lead European countries and their allies into a legal quagmire.

Author - Olena Madiak, 03/01/2023