Estonia Gives Green Light for Transfer of Frozen Russian Assets to Ukraine

Estonia Passes Law Allowing Transfer of Frozen Russian Assets to Ukraine

In a bold move, Estonia has passed a law that allows the authorities to transfer frozen Russian assets in the country to Ukraine as compensation for damages caused by Moscow’s full-scale invasion. The decision was met with mixed reactions, with Estonian President Alar Karis acknowledging that the confiscation of assets raises unresolved legal questions but assuring that they would only be used if the owner’s role in Russia’s war against Ukraine is proven sufficiently.

“The Riigkogu must be able to make policy choices in such an ambiguous situation,” Karis stated, referring to Estonia’s parliament, which overwhelmingly backed the confiscation law earlier this month before it was sent to the president’s desk for a signature.

This move by Estonia comes on the heels of a similar decision by the EU, which approved a measure to use frozen Russian assets for Ukraine after months of political wrangling. The EU froze around 200 billion euros ($216.3 billion) of Russian Central Bank assets held in the bloc as part of sanctions imposed on Moscow over its invasion.

Under the EU plan, 90% of the money taken from the earned interest on the assets would go to a fund used for supplying weapons to Ukraine, while the remaining 10% would be funneled into the EU’s budget to help increase the capacity of Ukraine’s defense industry.

The Kremlin has strongly denounced these decisions, calling them an “unprecedented violation” of international law and vowing to respond to what it described as the EU’s “banditry and theft.” Russia’s Foreign Ministry warned that Brussels could be the target of prosecution for many decades due to these actions.

As tensions continue to escalate between Russia, Ukraine, and the EU, the international community is closely watching the developments and the potential repercussions of these decisions on the ongoing conflict. The situation remains fluid, and further actions from all parties involved are expected in the coming days.