r/europe • u/DjangoDynamite The Netherlands • 1d ago

News EU to explore 'all options' about frozen Russian assets

https://www.brusselstimes.com/eu-affairs/1724780/eu-to-explore-all-options-about-frozen-russian-assets
463 Upvotes

95% Upvoted

120 comments sorted by

78

u/LongShow5279 United Kingdom 1d ago

I was worried only 2 options were going to be explored..

53

u/Neat_Key_6029 1d ago

The EU still thinks there is a international rule of order. It’s laughable.

38

u/JuliusCaesar121 1d ago

Forget the rule of law. The real problem is incentives

The Euro and Europe will seem like a much riskier place for Saudis, Qataris, Emirates, Chinese, etc to park their money if it turns out a political dispute can trigger asset expropriation

Should the EU still seize all Russian assets? I dunno. But don't pretend this isn't a tricky question

9

u/WhatsRatingsPrecious 1d ago

Fuck em. Follow the rule of law or go park your cash elsewhere, like China or Russia where they'll seize it for shits and giggles to pay their soldiers.

Time to start holding countries responsible for their actions.

35

u/JuliusCaesar121 1d ago edited 1d ago

Rule of law doesn't cut the way you think imo. I'm 100% sure that whatever contract the Russians signed to buy euro and pound denominated assets said nothing like "if your country starts a war all this shit is mine bitch"

In fact the Russians will probably sue in British or EU courts and could wind up winning, believe it or not. If that sounds absurd, imagine how ridiculous the courts would look refusing to enforce a contract or treaty due to political pressure. All of the norms we talk about would look like a joke

If this were easy the eu and UK would've done it by now

3

u/Left_Independence959 1d ago

> In fact the Russians will probably sue in British or EU courts

Russia can sue in Hong Kong court. Euroclear has several trillions in assets under management in Asia. It would be a shame if they were frozen caught in some court proceedings.

0

u/DougosaurusRex United States of America 1d ago

Alright. And if Europe has balls and tells Russia to eat shit, how will they get their money?

I mean having balls helps. If Russia doesn’t have to follow the rules, why does Europe?

2

u/JuliusCaesar121 18h ago edited 18h ago

A basic idea of finance is that sovereign debt issued by the EU is supposed to be risk free. This isn't supposed to happen

If that isn't the case, even more people will just buy US treasuries instead. That means EU interest rates and borrowing costs will go up

You are trying to turn an analytical problem into a question about balls. Probably because the latter doesnt require you to know anything

-3

u/simion314 Romania 1d ago

In fact the Russians will probably sue in British or EU courts and could wind up winning

Then other countries could also sue Ruzzia at the same courts to demand restoration of stolen assets by the Ruzzians and have them restored from those frozen funds. I mean if you demand contracts need to be respected then Ruzzia should also respect all contracts they signed, like the papers they signed to respect Ukraine borders or to restore Romanian treasure.

0

u/EquipmentAdorable982 1d ago

In fact the Russians will probably sue in British or EU courts and could wind up winning, believe it or not.

I choose "not" as this is a ridiculous take.

Are you aware how many lawsuits Russia would have to face for illegally seizing European & North American corporations & infrastructure?

In order for parties like Russia and the EU/UK to sue each other, they would first have to agree on a court they both deem legitimate and responsible, and then the representatives of both sides would have to show up in said court.

That's literally never gonna happen.

It surely is more complicated than Reddit (and me) wants to believe but the legal case you just described here is complete nonsense.

-13

u/WhatsRatingsPrecious 1d ago

They can try, I'm sure.

25

u/JuliusCaesar121 1d ago

Why am I wrong?

The EU can easily freeze these assets maybe indefinitely via sanctions. But seizing them is totally different.

Do you envision an EU court going "lmao fuck what the contract says. You lose Ivan." Maybe that happens somewhere but not here on planet earth

6

u/Neat_Key_6029 1d ago

You are right. Trump makes international politics and law seem like a joke. But to Europeans it isn’t. And it could bite in their asses if they make a misstep.

-1

u/No_Newspaper_1984 23h ago

You can pass a law saying that being engaged in a war of aggression is punishable by 50T $ fine with universal jurisdiction. There you go.

5

u/vladislav-turbanov 19h ago

Oh, the stupidity. The laws are not retroactive.

-1

u/No_Newspaper_1984 18h ago

You're stupid lol. It's not retroactive if the law mentions an ONGOING war. Basically Russia would have to stop the war before the law goes into effect to avoid the fine.

14

u/Provodniik 1d ago

Well, in this case, no money for EU.

-15

u/WhatsRatingsPrecious 1d ago

Who gives a shit? You think they need that money from those fuckers?

Fuck those assholes and fuck Vladimir Putin, too.

19

u/Numenorum Italy(MO)/Chuvash Republic(Russia) 1d ago

No more cheap debt because no one wants to buy your bonds -> investments become harder -> economy stagnates. Too unpopular of decision to push through democratic institutions and with questionable profit: you can easily lose way more money than you acquire by this move.

2

u/wolflance1-5 1d ago

Oh Europe is absolutely need, no, DEPENDENT on the money from "those fuckers", considering Europe isn't energy independent and has third rate manufacturing industry.

Finance and service is about the only thing propping Europe up.

0

u/Golvellius 1d ago

Forget the rule of law

The moment we forget the rule of law we can just let Putin come in and conquer us. I don't think people understand why we there is a fight to begin with.

3

u/Left_Independence959 1d ago

> I don't think people understand why we there is a fight to begin with.

It's you who don't understand. People don't have problems with Saudis who behead people for "witchraft". It's not about rule of law it's about big country that doesn't bend to US will. And old British russophobia since the Great Game.

-12

u/Nagash24 France 1d ago

It isn't tricky. Don't want your assets seized by Europeans ? Don't attack a European country, plain and simple. Seizing assets is a VERY gentle way to deal with what Russia is doing right now. It's like the bare minimum (remember, we're still letting Ukrainians deal with the actual fighting on their own) that a decent reaction could be.

Nothing about this is tricky. If you want your assets to remain accessible, don't start a war, don't invade a sovereign country, don't commit war crimes. And don't allow a government that wants to do these things to be/stay in power.

16

u/JuliusCaesar121 1d ago

Oh ok. You can't solve a math problem with righteous indignation unfortunately. Ignoring a challenge doesn't make it disappear

-8

u/Nagash24 France 1d ago

What challenge? There is no challenge. Saying that other countries (all of which have proven many times they aren't exactly trustworthy allies, might I add, looking at the list you wrote) "might act" a certain way maybe in the future is a VERY weak argument to use in the current situation.

Even if the war in Ukraine ends, and regardless when and how it ends, there's a whole lot that needs to be reconstructed there to make the country functional again. And because Russia caused it to be like that, it should be Russian money that is used for the reparations. The Russian government would never agree to put their own money into repairing anything in Ukraine, and even if they did, it would never amount how how much they destroyed. IMO using Russian money to help Ukraine prevent even more damage by fighting back (thus increasing the incentive on the Russian side to stop the war) would be a good option, probably our best use for that money at this point.

10

u/JuliusCaesar121 1d ago

Ok. People in charge of hundreds of billions of dollars in sovereign assets will ignore what happens here and behave in exactly the same way.

This is just a matter of backbone and moral righteousness. The only real question is good vs evil, not smart vs dumb

-4

u/Nagash24 France 1d ago

Nah. I just fundamentally disagree with you that bowing to selfish dictatorships is "smart" and that playing cards they would use against us without hesitating is "dumb". You're trying to make this about my moral compass, it's not about my moral compass.

European countries have no allies outside of Europe. Just governments with temporarily and partially aligned interests, who would sacrifice Europe in a heartbeat if it served their interests at some point in time. I don't see anything "smart" in being scared of their reaction if we started playing as dirty as every other government allows it to themselves. I think this is the opposite moral compass problem, actually: Europe ALWAYS chooses to bow down in the face of bullying. And that, I *do* believe is "dumb", indeed.

4

u/wolflance1-5 1d ago

Europe is free to confiscate Russian money. Russia can do jack shit about it.

But Europe just has to weather the consequence of collapse of trust, and everyone and their mother withdraw their money out of Europe, causing a shock so severe European economy might outright collapse.

Then again, Europe can confiscate THEIR money too, it is literally that easy. Rule of law only apply to plebs and not to myself!

-4

u/Medical-Committee-75 1d ago

Sounds like a good message to send. Criminal money that isn't parked here also won't corrupt people here. 

-3

u/Chance-Simple1356 1d ago

I don’t agree with this. It doesn’t take much to understand your money is safe up to the point you start a war of conquest against a European nation

3

u/JuliusCaesar121 18h ago

Oh ok. Easy!

I don't think you're putting yourself in the shoes of someone in charge of managing billions of dollars of national assets.

A big reason that people buy EU debt instead of, say, Brazilian or Argentinian debt is the rule of law. European debt is supposed to be risk free - this isn't supposed to happen in a so called established democracy. Asset seizure over a political dispute only happens in banana republics

If the EU does this too, why buy their debt? You can get a much higher return on Brazilian or Argentine debt

3

u/medievalvelocipede European Union 1d ago

The EU still thinks there is a international rule of order. It’s laughable.

No, there very much is. If there wasn't, there'd be no consequences to simply confiscate the Russian funds. Yeah Russia can't do dick about it, but that's also not the actor that matters. Confidence in financial institutions is critical; without it, the least consequence you face is paying a risk premium and it can get very much uglier than that.

2

u/Left_Independence959 1d ago

> Yeah Russia can't do dick about i

Russia can go after Euroclear assets in Asia. Euroclear has several trillions under management there, and Asian courts aren't under complete Western control.

2

u/MercantileReptile Baden-Württemberg (Germany) 1d ago

Confidence in financial institutions

That ship has sailed.

But the point is correct, basic security of ownership and avenues of redress must be set in Stone. Even for Oleg Oligarchov and Bilal Al-Bonesaw.

1

u/kdeles 1d ago

There is no "rule of order" when there is EU or USA.

29

u/redcremesoda 1d ago

Hasn’t the EU already had 3 years to “explore” this?

19

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

Already? In EU terms, 3,5 years are 3,5 minutes!

6

u/LEAP-er 1d ago

Yep. Exactly. But hey…just go virtue signaling and fool the public to think that they’re actually accomplishing something

3

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

It's like they are moving almost backwards, while the rest of the World is travelling at the speed of light.

0

u/LEAP-er 1d ago

They had years to pivot away from Russian energy too. But no…. “Cheap” right? 🤦🏻‍♂️

3

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

11 if you ask me, since the war started in 2014.

1

u/mertseger67 18h ago

They did but found they cant do shit so now they have invent a new law they just dont know what kind of.

7

u/TianZiGaming 1d ago

Highly doubt chasing out foreign investment is worth it in the long run just to make use of some Russian assets.

8

u/HAL9000_1208 Italy 1d ago

Stealing those assets would be a very bad idea... Most national banks hold reserves abroad, we really shouldn't give the signal that it is okay to steal them due to political disputes. Also it will destroy the confidence of foreign investors in the EU market.

-1

u/EquipmentAdorable982 1d ago

that it is okay to steal them due to political disputes.

There is no "political dispute".

There is an illegal war started by Russia.

26

u/RussBot10000 1d ago

This has been fake news since 3 years ago.

The west still has about 300 billion in assets still in russia. Thats why its dumb to steal this money because russia will just do the same to western assets left in russia. Thus negating any real financial loss.

So it would only serve to weaken the western financial system and be a fake news win for you mush brains. https://www.reuters.com/world/europe/russia-cant-match-western-asset-seizure-it-can-inflict-pain-2024-05-02/

Countries like Cyprus, the Netherlands, the UK, and Germany hold significant investments in Russia

1

u/EquipmentAdorable982 1d ago

Thats why its dumb to steal this money because russia will just do the same to western assets left in russia.

You mean all the corporations they illegally seized? That ship has long sailed.

11

u/DjangoDynamite The Netherlands 1d ago

''The European Union is examining all potential options to make optimal use of frozen Russian assets in Europe to bolster its support for Ukraine, EU Foreign Policy Chief Kaja Kallas announced on Saturday.

“It is vital to explore all possible avenues while minimising potential risks,” Kallas stated following a meeting of EU foreign ministers in Copenhagen.

Russian state assets abroad were frozen after Moscow’s invasion of Ukraine in February 2022. The majority of these assets, an estimated €210 billion, are held in Belgium, an EU member state. Initially, the EU decided to use the interest generated from these assets — amounting to several billion euros annually — to support Ukraine’s war efforts.

After months of debate, G7 leaders reached an agreement in October 2024 to utilise the interest from these assets to secure a €45 billion EU-backed loan for Ukraine.

However, several EU countries now argue for a more decisive move, advocating for the use of the assets’ principal, not just the interest. Others, including France, Germany, and the Netherlands, remain cautious, citing legal challenges and concerns that seizing the assets could deter future foreign investors and destabilise the euro.

Compromise proposals have emerged, such as Lithuania’s suggestion to treat the seized assets as a loan to Ukraine, earmarked for war reparations that Russia would eventually pay once the conflict ends.

“There is consensus on one point: given the devastation Russia has caused in Ukraine, it is inconceivable that this money could ever be handed back to Russia unless it fully compensates Ukraine,” Kallas told reporters.

Another proposal involves taking on higher-risk investments to generate greater returns from the frozen assets.

However, Belgium, particularly concerned about financial risks, expressed strong opposition to any changes in the existing strategy. “Changing the investment strategy is not an option, as it could increase legal, financial, and judicial risks,” Belgian Foreign Minister Maxime Prévot cautioned on Saturday during the Copenhagen meeting. He also restated Belgium’s firm opposition to seizing the assets outright.

“Let us work to mitigate these risks,” Kallas added, emphasising the need for a carefully balanced approach.''

1

u/TheBlacktom Hungary 1d ago

IT IS VITAL TO EXPLORE

3

u/Ok_Relation7695 1d ago

I worry that this might be something similar to why everyone started talking about recognizing Palistine—because they know Israel was gonna completely occupy Gaza… what do they know now? Is there gonna be some kinda deal and they are covering themselves to say hey we tried?

13

u/Dacadey 1d ago

Yeah, thankfully, EU politicians, despite loving to shoot themselves in the foot (feet?), are not that stupid to steal other countries' money and destabilize the Euro and EU financial markets.

4

u/lolwut778 1d ago

Does that include the ultimate apocalyptic option of a strongly worded letter? To let Putin know the EU means business, drop it off in person at the Kremlin by a high-ranking diplomat shaking his fist.

6

u/sandokando 1d ago

EU companies with assets in Russia will be probably very happy when the same measures will be taken. Lets see how this will mature.

1

u/[deleted] 1d ago

Good, they shouldn't have had assets on an hostile nation in the first place

8

u/Provodniik 1d ago

Tell that to Ms Kallas, whose husband was supplying Russia with gas pepper sprays. And he also borrowed money from her, so... just business.

2

u/sandokando 1d ago

True, EU should also not use shortcuts to avoid sanctions. Saldy it is always about the money and minimal principles.

15

u/EnglightenedEmiya 1d ago

A risky move this. Why would any country put their money in European financial institutions when it can be taken away according to EU whims? Once the precdent has been set, there is no turning back

6

u/Putaineska 1d ago

They won't. They'll migrate ever more to the US and US assets, probably too to countries like Japan/SK/Switzerland which are safe havens who don't seize assets.. I guess investors are already doing this anyway. Record amount of gold for example being moved from London to COMEX/NYMEX.

26

u/bklor Norway 1d ago

Seizing the assets can easily be the end of any ambitions EU has for the euro as global currency.

But I'm biased though. I'm Norwegian and for us "state assets can be seized" is scary as fuck. So that's not something we want to see normalized.

0

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

Tit for tat: the russia has already seized assets from Western companies.

12

u/Fluffy_Blueberry7109 1d ago

As a retaliation, and they have no interest or ability to be a global reserve currency anyway. They suffered no reputation damage from it.

0

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

The russia stole 400 aircraft at the beginning of its second invasion: no retaliation there. Please don*t try to find sad excuses.

 They suffered no reputation damage from it.

No, because we already know how corrupted and rotten the mosCOW regime is.

10

u/Fluffy_Blueberry7109 1d ago

This was after those aircraft were sanctioned. 

And Russia is welcomed in most of the world, often given red carpet treatment while EU and the US reps are given minimal courtesy. 

Recently even the US went out of their way to receive Putin while EU leaders get to just grovel in front of Trump.

-3

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

This was after those aircraft were sanctioned. 

No, those were aircraft in leasing that russia stole.

And russia is welcomed in most of the world, often given red carpet treatment

LOL: NK, China and now the USA LOL.

Keep coping.

12

u/Fluffy_Blueberry7109 1d ago

China is the largest industrial producer in the world with 1.3 billion people,  top 3 in all sciences and technology.  It is the top trading partner for half the planet. 

It is far more meaningful than the EU.

0

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

If you are still in the russia, start learning Chinese: you will need it in the next 5 years LOL!

2

u/RobotWantsKitty 1d ago edited 1d ago

Likewise, the West seized assets of Russian companies and private individuals. But sovereign state assets are a different ballgame.

1

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

I don't know, I have to r/askavatnik

0

u/Rumlings Poland 1d ago

Seizing the assets can easily be the end of any ambitions EU has for the euro as global currency.

they are non-existent atm anyways (regardless of whether EU should seize it or not)

7

u/vdcsX 1d ago

a war going on for 12 years isnt exactly a whim

5

u/GremlinX_ll Ukraine 1d ago

Yeah, yeah, reward Russia with giving it's money back, totally wouldn't backfire...

15

u/nbelyh 1d ago edited 1d ago

Well isn't it natural for a bank to give money back when a customer asks for it? Who would give money to a bank that can just take your money because they don't like you?

1

u/classicjuice Lithuania 1d ago

When the bank or a financial institution knows assets are being used for illegal activities they can freeze the assets and government can conduct a legal asset forfeiture. Invading a country and bombing civilians seems like a pretty big illegal activity.

-5

u/Sexul_constructivist 1d ago

If you kill a guy and the bank doesn't give you your money back, maybe don't kill people I dunno

14

u/nbelyh 1d ago edited 1d ago

This is usually decided by the court, not by the bank. It appears that the EU wants to take the role of "world cop" from the US, also picking up some fee money on the way. But unlike the US, it lacks the power to implement its decisions by force.

-4

u/Sexul_constructivist 1d ago

If only the West could unite in a permanent forceful democratisation of the world, allas autocracy remains through the cowardness of liberals.

14

u/EnglightenedEmiya 1d ago

Not about rewarding Russia. It's about other countries like China and Middle East not investing in EU anymore due to this move. Think about it from a Chinese perspective. If you take Russian money today for their Ukraine war, there is a good chance that tomorrow you'll take China's money should they make a move on Taiwan. Why would any country want to expose themselves to that risk and find themselves losing billions of dollars. The easier option would be to simply divert their money to non-European financial institutions. That is the precedent this move is leading to

-10

u/GremlinX_ll Ukraine 1d ago

It's about rewarding Russia - you can invade, capture the land, kill people, level cities, kidnap kids, and everyone just will give you your money back, so you can restore capabilities.

Honestly, give it back, when Russia will start knocking at your door, and you will realize that it's backfired, but this time you are a main dish, and you greed wont ssve you.*

  • sad that Baltics will pay the ultimate price, not that european country who decided to give back their money.

1

u/IndieRus 1d ago

And so you can invade any country and rip the benefits of international banking! Nice!

0

u/QuarkVsOdo 1d ago

Play stupid games, win stupid prizes.

9

u/EnglightenedEmiya 1d ago

Countries likely to play stupid games will simply move their money to other regions outside Europe. So they can no longer feel the pain of stupid prizes

1

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

Perfect and don't let the door hit your back.

0

u/QuarkVsOdo 1d ago

Okay go. Get your shit together, put it all in a bag and move it out of Europe.

Especially Orcs.

-1

u/[deleted] 1d ago

What precedent, being agressive towards Europeans having consequences beyond strongly worded letters? lol

5

u/EnglightenedEmiya 1d ago

Russia is losing out on trade revenue and interest money from those frozen assets. So they are definitely facing financial consequences

4

u/IndieRus 1d ago

They are laughing about pathetic europeans actually. Read rus news

5

u/[deleted] 1d ago

Rus news are as worth as NK news, just a place to study blatant propaganda and its effects on people. It's like telling me how Fox is talking about Europeans on the US lol, I couldn't care less about propaganda network's "opinions"

-1

u/[deleted] 1d ago

And what's bad about that? Don't be agressive towards Europeans while having assets in Europe lol, can't have the cake and eat it too.

1

u/DougosaurusRex United States of America 1d ago

So Russia can destroy European infrastructure and military equipment and get away with it with their money being safely guarded by the same countries it attacks?

I really do have to ask, what consequences is Russia facing?

-2

u/Lopsided-Affect-9649 1d ago

This argument assumes there are loads of other options for investors to invest their money safely. There arent, so they will continue to invest in Europe as its still the least bad option.

2

u/macrolks Zürich (Switzerland) 1d ago

i've read some dumb shit in my time on this website, but this is really up there.

-6

u/BelgianPolitics Belgium 1d ago

There are no other options to Euroclear. The Chinese are attempting to create an alternative but no success yet. Euroclear, a Belgian company, but backed by the US/Wall Street is king. And will be for a long time.

Even countries that hate the US and EU will still do their business here because there is simply no other option.

Freezing Russia’s assets for years and taking the interests has had no impact on Euroclear’s business. Everyone, including China, is still using it.

8

u/Fluffy_Blueberry7109 1d ago

But Chinese investment in the EU is down, with the exception of Hungary. They deal in trillions so it takes time to move it, and as you said they are building alternatives. 

2

u/EquipmentAdorable982 1d ago

More than 3 years into an active war, 11 years after the illegal annexation of Crimea, and the EU is still in the process of figuring out ways to "sanction Russia, but not too much!"

And then they act surprised when people start taking this (theoretically) beautiful construct less and less seriously.

3

u/Any-Original-6113 1d ago

Apparently, trade between the EU and Russia will not resume even after the ceasefire in Ukraine.

3

u/Betonkauwer Noord Brabant best Brabant 1d ago

A mere 3,5 years after the war and we're ''exploring'' all ''options''

If only the EU was as horny about fucking over russia as it was over fucking over us.

1

u/EquipmentAdorable982 1d ago

Look at all the proud Russian bots in here advocating for the "rule of law" on Russian money. You Vatniks are hilarious.

1

u/Individual-Zombie226 22h ago

EU needs to use those assets to fund weapons and warfare costs of NATO. The rise of NATO costs accepted by some EU countries, is money needed for schools, health and education.

So just use those assets as EU funds to pay for NATO increased costs 

1

u/Snake_Plizken 19h ago

Trow caution to the reckless winds. The money serves humanity best, spent buying weapons to help Ukraine win the war..

1

u/Sudden-Individual698 19h ago

I swear, they're just going to return them to russia at some point and then bitch how russia uses it to undermine their security 

1

u/ihadtomakeajoke 14h ago

For the 69420th time.

-1

u/TomSki2 1d ago

And that's even when the russkies have no such qualms.

https://united24media.com/latest-news/putin-seizes-french-air-liquide-assets-in-russia-amid-wave-of-expropriations-11216

4

u/Fluffy_Blueberry7109 1d ago

Yes. And they will take the rest too if the EU takes their money.  That is the nature of the game. 

It's about zero sum. But since Russia is retaliating and is not traditionally a safe haven for assets, it does not suffer reputational damage that could cause trillions in capital to leave it over the years.

-4

u/JuliusFIN 1d ago

They also stole 30billion worth of assets from my country Finland.

-2

u/DreadPirateAlia 1d ago

Ah, but here's the thing: The EU is cautious but smart & avoiding collateral damage.
Russia is throwing a tantrum that will bite them in the ass, big time.

EU froze the assets, legally, but they haven't touched them, only the interest from them (because that is in the gray area). It means that the Saudi money (& the US money, and the Chinese money, etc) is still safe in the EU, because the EU is a stickler for the rules. If the worst came to worst for those non-EU investors, their money would be temporarily frozen but still safe, so there's no incentive to pull it back from the EU, now or ever.

Meanwhile, russia shooting themselves in the leg, the bullet is just ricocheting before it hits them. What they did was STEAL the foreign companies assets. Once the whole thing (the war, the sanctions, etc) is over, those companies will give russia A WIDE BERTH, because there is no rule of law there. If they were stupid enough to invest in russia (again) there is no guarantee that russia won't nationalize their assets again in a pique.

(Yes, I would love it if those funds were confiscated and handed over to Ukraine, but that is not happening, now or ever. They can be used as a safety deposit for the loans for Ukraine, Ukraine can get the interest from them, but they will never ever get handed to anyone, because handing them over would be incredibly self-destructive for the EU.)

3

u/Left_Independence959 1d ago

Russia has trade surplus so we don't need FDI.

Also tech transfer that should've come with FDI never happened in Russia because technological containment never ended.

So Russia loosing nothing, because promised fruits of FDI never came to fruition even when West "loved" Russia.

2

u/amy-schumer-tampon 1d ago

Any option about frosing israeli assets?

1

u/Chance-Simple1356 1d ago

The EU does more exploring. Soon we will see three, maybe four EU heads of state doing a group photo and giving some soundbites to journalists.

Rinse and repeat

0

u/QuarkVsOdo 1d ago

Lick it.

2

u/kuralho 1d ago

If the EU grows a pair, there is only one option, take the funds and use them to help Ukraine.

1

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

russia stole, among other things, 400 aircraft with no consequences and we are still here exploring?

0

u/JuliusCaesar121 1d ago

Another proposal involves taking on higher-risk investments to generate greater returns from the frozen assets.

The idea of plowing all of this money into a handful of meme stocks and shitcoins makes me laugh

-3

u/AR_Harlock Italy 1d ago

Sell them and give money to Russian victims... like we do with mafia assets here in italy

-9

u/OutsideNectarine6503 1d ago

Yes, risky, but right. For the majority of EU citizens, Ukraine belongs there; it defends our values. For friends who are slaughtered for greed and idealism, we must help. As if it weren't justified, and countries or companies could never justify not doing so. Money and foreign currency are the fuel of this carnage... no idea why we're afraid.

-1

u/GreenEyeOfADemon 🇮🇹 - EUROPE ENDS IN LUHANSK! 🇺🇦 Слава Україні!🇺🇦 1d ago

My humble upvote dear Sir/Madame.

-4

u/JonLivingston70 1d ago

Just do it idiots. 

Russia has no problem stealing and using the proceeds via cyber crime or regular crime.

-1

u/Silent_Basket_7040 1d ago

Can it explore faster?

-2

u/probable-degenerate 1d ago

i swore i have seen this exact title pop up every 6 months.

However, several EU countries now argue for a more decisive move, advocating for the use of the assets’ principal, not just the interest. Others, including France, Germany, and the Netherlands, remain cautious, citing legal challenges and concerns that seizing the assets could deter future foreign investors and destabilise the euro.

considering the only country effected by this would be china This would not be a bad thing. I mean seriously what sort of stupid logic is that. the vast majority of your foreign investment is european or american!