EU Debate: Unfreezing Assets for Austro-Russian Compensation Gambit

The European Union is currently examining a plan to unfreeze assets related to Russian oligarch Oleg Deripaska. This move aims to facilitate compensation for Austria's Raiffeisen Bank International, which was ordered to pay damages in Russia, according to EU diplomats.

A proposed provision has been inserted at Austria's insistence into the 19th package of sanctions against Moscow, now under consideration. A Russian court fined Raiffeisen about 2 billion euros after a lawsuit by a company once owned by Deripaska. The bank could recover that fine by taking over shares in Austrian construction firm Strabag, previously partially owned by Deripaska. However, EU sanctions have immobilized these assets.

The Financial Times initially reported the development, resulting in a 7% rise in Raiffeisen shares by 1210 GMT. Several EU governments criticize the Austrian proposal, which will be debated at an EU members' ambassadors meeting in Brussels. Austrian foreign ministry comments emphasize protecting national company interests and avoiding dual profits for the Russian aggressor. Concerns persist that such actions could undermine EU sanctions and encourage similar moves by other oligarchs.

(With inputs from agencies.)