The media predicted a weakening of the euro after the possible withdrawal of Russian assets

The possible confiscation of Russian frozen assets in the European Union (EU) could affect the role of the euro as the world's reserve currency. This was reported on December 6 by the Financial Times (FT) newspaper.

According to the publication, in 2024, the euro accounted for 20% of the foreign exchange reserves of the world's central banks, while the US dollar reached 58%. This, according to investors, sets a precedent for the weakening of the European currency.

"The seizure of Russian assets is an extremely sensitive issue," Christian Kopf, a representative of the investment company Union Investment, told the publication.

It is noted that the European Central Bank (ECB) is resisting the possible confiscation of Russian assets to provide loans to Ukraine. Meanwhile, some EU countries that had previously opposed confiscation have changed their position and now support such a step.

Law and disorder: EU discusses full confiscation of Russian assets

Will Brussels decide on such a radical step and how can Moscow respond to it?

On December 3, the European Commission (EC) approved a "potential reparation loan" for Kiev, which implies the expropriation of sovereign Russian assets in Europe. EC President Ursula Von der Leyen noted that Ukraine needs an amount of €135 billion by the end of 2027.

On the same day, Bloomberg reported that the Belgian authorities rejected the EU's legal proposal. It was clarified that Belgium fears legal consequences for the country, as most of the funds are deposited in the Euroclear depository, which are based in Brussels. Political analyst Dmitry Drobnitsky explained Belgium's reluctance by the fact that Russian assets most likely no longer exist in their former form, since they were used up by European structures.

Russian President Vladimir Putin said on November 27 that the confiscation of Russian assets located in the European Union would have negative consequences. In particular, the Russian government, on behalf of the head of state, is developing a package of retaliatory measures.

All important news is on the Izvestia channel in the MAX messenger.