Published on 20 November 2023 in Client Alerts
In response to the ongoing Russia-Ukraine conflict, the EU has expanded its sanctions package on Russia.
Among the most significant and controversial of these measures is the blocking of almost €300 billion of CBR’s reserves held by the EU and other G7 partners. Following this action, in October 2022, the European Council requested the Commission to present options for utilising frozen Russian assets for the reconstruction of Ukraine. The European Commission has noted that in order to “make the most out of this funds and start rebuilding Ukraine”, it has proposed to set up a structure to manage the frozen public funds, which involves investing them to use the proceeds for Ukraine’s benefit.
The move to seize Russian assets has since been gaining traction beyond the EU circles. In September, U.S. Treasury Secretary Janet Yellen and British Finance Minister Jeremy Hunt have expressed support for a European Union plan to implement a windfall tax on profits generated by frozen Russian sovereign assets, which will be used to help finance the reconstruction of Ukraine.
Belgium’s move to seize €1.7 billion from the taxes charged on profits generated from frozen Russian assets will have far reaching legal and political repercussions. It has been recently reported that the European Central Bank, in a draft internal EU note, has warned against requisitioning CBR’s assets, which could potentially damage the Euro’s position as Europe’s common currency. This move also comes following reporting of an unpublished document in which EU authorities concluded that European authorities cannot legally seize CBR’s assets to fund efforts to help Ukraine.
This move from Belgium appears to be an early indicator of what’s to come. Belgium’s €1.7 billion fund remains a marginal amount to support the overall efforts to rebuild Ukraine, as the World Bank estimated in April that the total cost of the damage is $411 billion. Belgian clearing house Euroclear manages almost €125 billion of frozen CBR assets.
On 25 June 2025, the European Commission published a proposal for an EU Space Act. The proposal seeks to establish an EU single market for the space sector, with common rules regarding safety, security and sustainability for all entities providing space-based services in Europe.
Learn moreOn 23 July 2025, the International Court of Justice (the “ICJ”) issued its historic Advisory Opinion on the obligations of States with respect to climate change. Barbados was a sponsor of the United Nations General Assembly request to the Court.
Learn moreBarbados has been ranked the world’s top performer in multilateral cooperation, according to the United Nations’ latest Multilateralism Index.
Learn moreOn 20 April 2025, the African Union (“AU”) inaugurated the African Space Agency (“AfSA”). AfSA is the third regional space agency, after the European Space Agency (“ESA”) and the Latin American and Caribbean Space Agency.
Learn more