A French institute's report warns that the European Union could be forced to pay tens of billions of euros to oligarchs and companies close to the Kremlin through old economic treaties. The EU has already provided nearly 60 billion euros in military aid to Ukraine, but some sanctions are being challenged in court. These proceedings have a chance of succeeding.
The Veblen Institute for Economic Reforms released a 27-page note on Tuesday, December 9, titled 'Frozen Assets, Burning Complaints.' The document warns of the exploitation by Kremlin allies of old commercial treaties linking Europe to Russia. Following Russia's invasion of Ukraine, the EU, Ukraine, and about twenty other countries imposed economic sanctions against Moscow. These measures target companies and individuals tied to the regime and the war effort, including the seizure of villas, yachts, and the freezing of assets worth millions or billions of euros.
However, some Russian oligarchs are challenging these sanctions in court, citing these outdated bilateral agreements. The institute notes that such proceedings are ongoing and could force Europe to financially compensate these entities, potentially matching the aid given to Kyiv. As the EU has mobilized nearly 60 billion euros for military support to Ukraine, this risk could represent a major setback for European efforts against Russia.
The report emphasizes the need for caution, as these legal challenges might succeed and require substantial payments to pro-Kremlin actors, further complicating economic ties between Europe and Russia.
