EU: Zelenskyy Says He & Lagarde Held Talks On Using Frozen Russian Assets

Ukrainian President Volodymyr Zelesnkyy posts on X following a call with ECB President Christine Lagarde. Zelesnkyy: "We discussed how to ensure the fair use of frozen Russian assets to protect against Russia’s war and to help rebuild life in Ukraine. There are solutions for how this can be done. I am grateful for the support. There must be sufficient political will in Europe, as most of these assets are concentrated there. The majority of our partners support us in this effort, and we count on action."

• The EU is considering the potential use of ~EUR140bln in frozen Russian assets as part of a 'reparation loan', a complex plan for using the funds without seizing them that sits in something of a legal grey area.
• Lagarde has been seen as an obstacle to any plans, raising concerns on financial stability. Speaking to MEPs on 6 Oct, Lagarde said "...with in mind financial stability and the strength of the euro, we will be looking very attentively to make sure that what is proposed is in accordance with international law (and) is mindful of financial stability."
• There remain divisions within the EU regarding the plans. Speaking ahead of the ECOFIN meeting, Sweden's Finance Minister Elisabeth Svantesson said, “We will do whatever it takes to get all countries on board”. Constrast with Belgian PM Bart De Wever warning his gov't would not approve a plan unless guaranteed by other EU countries (the assets are largely held at Belgium's Euroclear, meaning Brussels carries the legal risk should the assets be seized).