Kaja Kallas, Borrell's Successor in the EU, Urges Use of Frozen Russian Assets to Rebuild Ukraine

Kaja Kallas, a candidate for the post of High Representative of the European Union to succeed Josep Borrell and former Estonian Prime Minister, has called on EU partners to use about $300 billion of frozen Russian assets to rebuild Ukraine, which suffered from the Russian war, Bloomberg reports.

In particular, at a hearing in the European Parliament, Kallas stressed that EU countries should overcome all doubts about the direct use of frozen Russian assets, as Ukraine has ‘legitimate claims’ to these funds after Russia's invasion.

‘I won't use the word confiscation because it is really the use of assets in a legitimate way,’ Kallas said.

At the same time, she said Russia also has legitimate claims to the assets in the EU.

‘We recognise that Russia has a legitimate claim against us because we have their assets, but Ukraine also has a legitimate claim against Russia because they are destroying Ukraine every day,’ Kallas said.

She added that Russia may be able to ‘claim back’ assets as part of the settlement, but added: ‘I doubt, given what is happening, that there is anything left there.’

Kallas also said that EU sanctions against Russia should remain in place indefinitely until the 27 member states decide to lift them. She expressed her hope that other EU member states would follow the example of Estonia, which allocates 0.25% of its GDP to support Ukraine.

The G7 this year reached an agreement to use the proceeds of the frozen assets of the Russian central bank under a plan that limits any direct access to the funds. Some countries have weighed the potential legal implications of such a move and the risk to the euro, while others, including the US and UK, have advocated bolder options such as direct asset seizures.