Kallas wants to use all $300 billion of Russian assets to rebuild Ukraine
Kaja Kallas (Getty Images)
The European Union should directly use $300 billion of frozen Russian assets to finance the recovery of war-torn Ukraine, according to Kaja Kallas, the candidate for the EU's top foreign policy position.
Kallas, the former Prime Minister of Estonia appointed as the EU's High Representative, said that member states should abandon any doubts regarding the direct use of these assets, citing Kyiv's "legitimate claims" to these funds following Russia's invasion.
"I will not use the word confiscation, because it’s really using the assets in a legal way," Kallas told European Parliament members during her confirmation hearing in Brussels on Tuesday.
Her candidacy must be approved by the European Parliament before she can succeed Josep Borrell.
"We recognize that Russia has a legitimate claim toward us, because we have their assets. But Ukraine also has a legitimate claim toward Russia because, every day, they are destroying Ukraine," Kallas said.
She clarified that Russia might have the opportunity to "claim back" assets as part of a settlement, but added, "I doubt, considering what is going on, that there is anything left over."
To taxpayers who oppose EU member states paying for Ukraine's recovery, Kallas said: "We shouldn't. Those who are destroying Ukraine are paying for it."
Kallas added that Estonia's initiative to allocate 0.25% of its gross domestic product to Ukraine should be adopted by other member states.
She also called for EU sanctions on Russia to be indefinite, rather than renewed every six months, until all 27 member states decide to lift them. "It would be better if it were the other way around," Kallas said.
Russian assets
This year, the Group of Seven reached an agreement to seize profits generated from frozen Russian assets. However, the plan does not provide for outright confiscation. Some countries have considered the potential legal consequences and the risks to the euro, while others, including the US and the UK, support bolder options such as direct asset confiscation.
President Volodymyr Zelenskyy has said that Ukraine knows how to use Russia's frozen assets. He proposed transferring the full $300 billion to Kyiv. "Frankly, these are Ukrainian funds," he said.
According to World Bank estimates, by the end of 2023, Ukraine’s total economic, social, and other financial losses from the war will amount to $499 billion.
