Some Western banks oppose allocation of interest from russian frozen assets to Ukraine - Reuters

Some Western banks oppose the European Union's proposal to use the interest earned from frozen russian assets to provide aid to Ukraine. Banks fear that russia may later involve them in legal proceedings.

This was reported by the Reuters agency with reference to its own sources in the banking industry.

Last Thursday, March 21, the EU countries agreed to continue work on the plan for the annual use of EUR 3 billion from frozen russian assets for the supply of weapons and ammunition to Ukraine.

The leaders of the EU states said that the interest funds from the frozen assets of the russian federation can be used within several months.

Interlocutors told Reuters on condition of anonymity that some Western banks oppose the proposal. They fear legal proceedings that russia may initiate against them if they participate in the transfer of funds to Ukraine.

They believe that such actions can undermine confidence in the Western banking system.

The Reuters sources added that they were sharing their concerns with European and British officials, pointing to possible legal proceedings when sanctions against russia are ultimately either eased or lifted entirely.

As Ukrainian News Agency earlier reported, in January of this year, President Volodymyr Zelenskyy called on Western countries to speed up the creation of a legal framework that would allow the use of frozen assets of the russian federation to help Ukraine.

We will remind, earlier the Bloomberg agency reported with reference to its own sources that russia has started active consultations with leading lawyers regarding possible legal proceedings in case the West decides to use the frozen assets to help Ukraine.

We also reported that the former president of the World Bank, Robert Zoellick, called on the West to use the frozen assets of the russian federation to provide aid to Ukraine "without hesitation".

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