Russia's Banker Warns EU: Frozen Assets Could Spark Decades of Legal Battles

Key Figure in Russia's Banking Sector Issues Stern Warning

Andrei Kostin, a prominent figure in Russia's banking sector, has issued a stern warning to the European Union. He believes that if the EU proceeds with plans to use frozen Russian assets to support Ukraine, it could lead to a lengthy legal battle.

EU's Plan and Opposition

This warning comes after EU leaders recently attempted to agree on a plan to loan Ukraine 140 billion euros from these frozen assets. However, they faced opposition from Belgium.

Potential Escalation and Legal Action

Kostin argues that seizing these funds could escalate tensions. He suggests that Russia might respond by confiscating European investments within its borders. He also predicts that this dispute could result in decades of litigation, even after a peace agreement is reached in Ukraine.

Kostin advocates for Russia to take legal action against the EU, Belgium, and Euroclear in various courts, including the United Nations' court.

Open to Compromise

Interestingly, Kostin is open to the idea of splitting Russia's sovereign assets as part of a broader peace agreement. An early version of a U.S.-backed peace plan proposed investing $100 billion of the frozen funds into Ukraine's reconstruction, with the remaining funds going into a joint U.S.-Russia fund.

Path to Agreement

Kostin acknowledges that reaching an agreement will take time, but he believes that compromises will eventually be made.