Joint Letter from the Baltic States and Slovakia: "Seize Russian Assets to Rebuild Ukraine"

Vladimir Putin, President of Russia
Photo by Reuters Yonhap News

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 23rd (local time) that the three Baltic states (Lithuania, Latvia, Estonia) and Slovakia are preparing a joint letter calling for the confiscation of frozen Russian assets to be used as funds for the reconstruction of Ukraine.

The four countries plan to submit the joint letter to the European Union (EU) Finance Ministers' meeting on the 24th. As the EU Commission is expected to propose new measures to amend and strengthen the EU confiscation law later this week, demands to use Russian assets for Ukraine's reconstruction are likely to increase.

On the 3rd, Ukraine estimated that about $600 billion is needed for national reconstruction.

In the joint letter, the four countries estimated that the costs required for reconstruction have greatly increased due to the ongoing war. They also emphasized that Russia should bear a significant portion of the costs for Ukraine's reconstruction.

The four countries also urged finding legal ways to utilize the seized Russian assets as much as possible as funds for Ukraine's reconstruction.

The EU Commission announced on the 18th that it is examining whether Russian assets seized under EU or member state laws can be used as funds to support Ukraine. At that time, the Commission did not mention assets of the Russian central bank.

Christian Wigand, spokesperson for the Commission, said, "Asset confiscation is different from asset freezing," adding, "In most EU member states, asset confiscation is impossible without a criminal conviction." He also added, "Legally, assets of private companies and central banks are treated differently."

According to spokesperson Wigand, the Commission will disclose later this week whether it has found ways to confiscate Russian assets and will announce new proposals to amend and strengthen the EU confiscation law.

The four countries urged the EU to prepare new sanctions against Russia. They argued that ultimately, if Russia does not stop its invasion of Ukraine, the EU should completely sever economic ties with Russia and take measures to ensure that no EU financial resources, goods, or services aid Russia in conducting the war.