EU and Ukraine Consider Possibility of Receiving Reparations from Russia

The recovery of Ukraine after the military actions caused by Russia requires enormous resources — estimates suggest that the total damages amount to around 400 billion pounds sterling. As part of a peace agreement supported by U.S. President Donald Trump, the confiscation of over 225 billion pounds (more than 300 billion dollars) in frozen Russian assets abroad is possible.

This is reported by AgroReview

Possible Reparations and Russia’s Reaction

Political scientist and Eastern Europe expert Mark Galeotti notes:

“It is telling that Moscow will scream and spit, but in reality, it will see this as a way to pay reparations from financial assets that it will not be able to recover anyway”

. According to one European diplomat, Russia is likely to react emotionally, but in fact, this will become a means of forcibly collecting reparations from frozen assets.

Prospects for the Return of Territories and Ukraine’s Role in Recovery

It is analyzed that the issue of returning territories occupied by Russia and discrediting Putin’s regime will depend on Ukraine’s ability to build a stable and successful state in the long term. The fear of new aggression will remain, but Kyiv will employ a tactic referred to as the “hedgehog strategy”: making itself so prickly that it becomes difficult and risky for Moscow to resume military actions.

The National Bank of Ukraine assures that the confiscation of Russian assets will not significantly affect the role of the euro in the global economy. Ukrainian Prime Minister Denys Shmyhal emphasized that the frozen Russian assets are insufficient for the country’s recovery and that additional sources of funding must be sought. He proposed that the West impose tariffs on imports of goods from Russia and direct the collected funds towards the recovery of Ukraine.