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Europe, Japan, the United States and Canada have frozen about $300 billion (about 6.8 trillion crowns) from the Russian central bank in response to the country’s invasion of Ukraine. Most of this amount, $200 billion, is held in Europe.
Even before Monday’s decision, there was speculation that the EU was unlikely to seize the assets because countries feared a precedent would be set that would mean other states could also seize European assets in their own countries.
Monday’s decision to fund Ukraine’s reconstruction came days before an emergency EU summit where EU leaders will try to overcome Hungary’s opposition to a plan that would make Kiev 50 in the next four years billion euros (1.2 trillion CZK). The European Commission should then propose to allocate funds from the revised EU budget and transfer them to Kyiv, although it is unclear when Ukraine will receive them.
France and Germany have already expressed reservations about the plan, and the European Central Bank has warned that it could weaken confidence in the euro and unsettle global markets.
Thanks to Western help, Ukraine’s foreign exchange reserves grew by 42 percent last year
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