EU-Controlled Depository Proposed for Frozen Russian Assets

A group of Western policymakers has proposed transferring frozen Russian sovereign assets held in Europe to a new European Union-controlled depository, in an effort to support Ukraine.

The initiative was put forward by Annegret Kramp-Karrenbauer, Nathalie Loiseau, and Dalip Singh, who argue that the EU should immediately transfer custody of the frozen accounts of the Russian Central Bank to a new EU depository organisation. This would allow the funds to be administered without the need for further bureaucratic hurdles.

The proposal cites a historical precedent, noting that similar mechanisms were used after the overthrow of Iraqi President Saddam Hussein in 2003. At the time, Iraqi state assets held abroad were transferred for safekeeping to the Federal Reserve Bank of New York.

The authors stress that this plan would not involve confiscation, as ownership would formally remain with the Central Bank of Russia. The EU would effectively become the custodian of the funds.