Russia's Banker Warns EU: Frozen Assets Could Spark Decades of Legal Battles

Andrei Kostin, a key figure in Russia's banking sector, has issued a stern warning to the European Union. He believes that if the EU proceeds with plans to use frozen Russian assets to support Ukraine, it could lead to a lengthy legal battle. This comes after EU leaders recently attempted to agree on a plan to loan Ukraine 140 billion euros from these frozen assets, but faced opposition from Belgium. Kostin argues that seizing these funds could escalate tensions. He suggests that Russia might respond by confiscating European investments within its borders. He also predicts that this dispute could result in decades of litigation, even after a peace agreement is reached in Ukraine. Kostin advocates for Russia to take legal action against the EU, Belgium, and Euroclear in various courts, including the United Nations' court. Interestingly, Kostin is open to the idea of splitting Russia's sovereign assets as part of a broader peace agreement. An early version of a U. S. -backed peace plan proposed investing $100 billion of the frozen funds into Ukraine's reconstruction, with the remaining funds going into a joint U. S. -Russia fund. Kostin acknowledges that reaching an agreement will take time, but he believes that compromises will eventually be made.