Webinar | Can the confiscation of frozen Russian assets fund Ukraine’s defence?
Europe is currently facing a critical dual challenge: sustaining Ukraine’s defence efforts under severe resource constraints, while managing the geopolitical and financial risks associated with utilizing frozen Russian sovereign assets. As Russia mobilizes its full economic potential to seize more Ukrainian territory, the question of leveraging the estimated €200 billion in immobilised Russian funds in the EU has become a strategic imperative for Kyiv.
The Centre for Economic Strategy (CES) has conducted a pioneering study to directly address the primary concern raised by European financial institutions: the risk of major market destabilisation and a loss of confidence in the Euro as a reserve currency. By examining the impact of announcements regarding Russian assets on European sovereign yields, the CES has found that the market reaction is, overall, moderate and transitory.
Their data shows that while yields do react to news about confiscation, the peak single-day effect remains below 30 basis points, with movements on longer-term debt being generally modest. This strongly suggests that fears of a massive capital flight or structural devaluation of the Euro are largely overstated when weighed against the urgent need to finance Ukraine’s defence and reconstruction.
The Jacques Delors Institute is delighted to invite you to this essential webinar where we will delve into the economic realities and political implications of this critical policy debate.
With:
- Thorniké Gordadzé, Associate Researcher at the Jacques Delors Institute, specialist in the Eastern Neighbourhood and the Black Sea region, Professor at Sciences Po
- Iana Okhrimenko, Senior Economist, Centre for Economy Strategy
- Paula Subacchi, Sciences Po Chair in Sovereign Debt and Finance
- Mykola Yurlov, Counsellor, Department of International Law, Ministry of Foreign Affairs of Ukraine.
