ILI Analyst Bohdan Karnaukh discusses the legal and economic aspects of confiscating Russian assets for Ukraine’s benefit on Apostroph TV

In an interview on Apostroph TV, Bohdan Karnaukh, an analyst at the Institute of Legislative Ideas, discussed the issue of confiscating frozen Russian assets and transferring them to Ukraine. Estonia, Lithuania, and Sweden have actively supported using these funds to compensate Ukraine for the damage caused by Russia’s aggression. However, as Karnakh pointed out, the main obstacle is not legal or economic, but the lack of political will from some countries, especially Belgium, where significant amounts of Russian assets are held.

Legally, confiscation of Russian assets can be viewed as countermeasures in response to Russia’s aggression, which is a legitimate step under international law. Although there were initial concerns about violating the principle of sovereign immunity, international law allows such actions as a response to internationally wrongful acts. From an economic perspective, Karnakh emphasized that fears of negative impacts on global financial markets from confiscation are exaggerated. Research by the National Bank of Ukraine and the Kyiv School of Economics shows that these risks have been significantly reduced, and the situation on the markets has already stabilized due to the freezing of Russian assets.

Despite the legal and economic arguments in favor of confiscation, Karnakh highlighted the main barrier: political will from countries where Russian assets are held. Belgium, in particular, plays a key role in this process, as it holds about 200 billion euros of Russian assets. As for how Ukraine could use the confiscated funds, Karnakh mentioned various options, including the creation of a separate financial mechanism or a trust fund to manage them. It is crucial that these funds benefit Ukraine and generate profits that can be used for the country’s recovery.

View more in the full interview: