One of the close associates of Russian dictator Vladimir Putin, VTB Bank Chairman Andrey Kostin, criticized the European Union for its decision to use income from frozen Russian assets to support Ukraine. According to Kostin, such actions by the EU, he claims, “undermine the international legal system.”
This is reported by Finway
Kostin’s Statement on Frozen Assets
In a video address circulated by the Russian propaganda outlet RT, Kostin accused the EU of illegally using income from seized assets. He asserts that the interest from frozen funds is just as much property as the assets themselves, calling it “theft” and “absolute plunder.”
“Well, this is theft… You see, they are now using the interest. Well, the interest is the same money as the owner’s, just like the principal debt. There is no difference. We bankers know this well… This is absolute plunder and theft. It is simply blatant, and it will come back to haunt them because it destroys any kind of international legal system or foundation for such matters. It is very dangerous to play such games. You start against one, tomorrow someone will be against you,” said Kostin.
Despite such rhetoric, the Russian banker is known for his active support of Russia’s aggressive policies, the occupation of Ukrainian territories, and the justification of war crimes. He labels the EU’s actions, which are a response to violations of international law by the Russian Federation, as “blatant theft.”
Volume of Frozen Russian Assets and Their Use
According to available estimates, about 260 billion euros of assets from the Russian central bank, mostly in the form of securities and cash, have been frozen by G7 countries, the European Union, and Australia. More than two-thirds of this amount is blocked in the EU.
The majority of the funds are held in the Belgian clearing center Euroclear. Last year, this center generated about 4.4 billion euros in profit from managing frozen assets. EU leaders plan to discuss the use of these revenues at a summit in Brussels at the end of the week.
Part of the profit will remain in central securities depositories to cover asset management costs and to protect against potential risks, including possible actions from Russia. Additionally, taxes and operational expenses will be taken into account, after which, according to experts’ estimates, the net profit will amount to about 3 billion euros per year.
Preliminary discussions among the foreign ministers of Germany, France, Italy, Poland, Spain, the United Kingdom, and European Commissioner Kaia Kallas emphasized that nearly 200 billion euros of Russian assets will remain frozen as long as the aggression against Ukraine continues and damages are not compensated. Europe intends to continue to pressure Putin’s regime to achieve peace.
At the same time, as reported by Finance Minister Sergey Marchenko, Ukraine has already received 13.6 billion dollars through the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism. These funds were provided specifically from the income generated by frozen Russian assets.