Should Russia pay Ukraine to rebuild – or even to defeat its invasion? Some say yes.

The EU finds itself in uncharted legal territory as it ponders using Russia’s bank accounts against it

A rocket leaving a multiple launch rocket system. Some legal experts argue that Russia’s immobilised assets in Western financial institutions should pay for armaments to defeat its invasion. (Courtesy Ukraine Armed Forces)

Within days of invading Ukraine in February 2022, Russia lost control of the assets its central bank held in foreign currencies abroad.

Some $300bn were frozen in the European Union, US, UK, Canada and Japan – about half the bank’s holdings – as Ukraine’s allies sought to hobble Russia’s ability to wage war.

Legally the money belongs to Russia, but the EU, which holds the largest chunk – about $207bn – is struggling to find a legal way to use Russia’s money to rebuild Ukraine’s shattered infrastructure.

Some experts believe Russia’s money could even be used to generate immediate benefits for Ukraine’s war effort – especially since $60bn of US military aid remains stalled in Congress.