Ukraine Criticizes Euroclear's Payout of Frozen Russian Assets

Ukraine's government has strongly denounced the recent decision by Belgium's Euroclear to allocate 3 billion euros of frozen Russian assets to Western investors. This action has been criticized for potentially weakening Europe's collective resolve against Moscow as tensions continue over the war in Ukraine.

This controversial move, authorized following a change in EU sanctions, shifts focus from the broader goal of using Russian assets to support Ukraine's recovery. Iryna Mudra, a senior official in the Ukrainian administration, asserts that prioritizing investors' compensation over war victims sends a message of inconsistency in Europe's stance.

With Russian assets initially frozen as a critical sanction, Ukraine argues that these funds should aid their defense efforts rather than be returned to Moscow or distributed elsewhere. Critics like Jacob Kirkegaard highlight that the decision risks setting a concerning precedent for future sanctions undertakings.

(With inputs from agencies.)