Evhen Tsybulenko*
Liilia Mesila**
Interaction of EU and EU Member State Laws in Relation to Frozen Russian Assets
Suggested citation:
Tsybulenko, E., & Mesila. L. (2025). Interaction of EU and EU Member State Laws in Relation to Frozen Russian Assets. Lex Portus, 11(3), 36–52. https://doi.org/10.62821/lp11303
Published online: 01.07.2025
*Professor, Department of Law, Tallinn University of Technology (3, Akadeemia tee, Tallinn, Estonia)
**Tallinn University of Technology (3, Akadeemia tee, Tallinn, Estonia)
ABSTRACT
During the ongoing Russo-Ukrainian war, one of the key issues being discussed is the reparation of damages caused by Russia in Ukraine. Given Russia’s refusal to voluntarily pay for reparations, there have been proposals to confiscate frozen Russian assets for the purpose of rebuilding Ukraine. However, this approach is likely to raise several legal challenges that need to be addressed or clarified. Therefore, the aim of this article is to identify and analyze the main legal issues related to the confiscation of frozen Russian assets from the perspectives of international and European Union law, human rights, and local laws. Even though sovereign immunity generally protects state assets from foreign jurisdiction, exceptions may apply in cases of violations of international law. There is an ongoing debate from an international law perspective over whether sovereign immunity should be overridden when a state engages in illegal military actions. The use of frozen assets also raises human rights concerns, particularly around the right to property, the presumption of innocence, and proportionality measures. Therefore, legal safeguards need to be in place to protect individual rights during asset confiscation. Additionally, at the local level, many countries lack the legislative frameworks to support confiscating non-criminal assets. In conclusion, while utilizing frozen Russian assets for Ukraine’s reconstruction is a promising solution, the associated legal, ethical, and human rights challenges require careful consideration to ensure fairness and legality.
Keywords: EU law, frozen assets, confiscation, reparations, Russo-Ukrainian war, sanctions, sovereign immunity.
REFERENCES
Air Services Agreement Case, 1978. https://www.iilj.org/wp-content/uploads/2016/08/Air-Services-Arbitration-France-v.-US.pdf
Åslund, A. (2023). How to reconstruct Ukraine. EconPol Forum, 24(2), 16–19. https://hdl.handle.net/10419/272161
Bank of Russia. (2024, November 29). Legal Status and Functions. https://www.cbr.ru/eng/about_br/bankstatus/
Borlinim, L., & Rose, C. (2024). The normative development of laws on asset preservation and confiscation: An examination of emerging best practices. International Journal of Constitutional Law, 22(2), 514–537. https://doi.org/10.1093/icon/moae036
Boucht, J. (2019). Asset confiscation in Europe – past, present, and future challenges. Journal of Financial Crime, 26(2), 526–548. https://doi.org/10.1108/JFC-04-2018-0043
Breydo, L. E. (2023). Putin’s Matryoshka: A War Reparations Facility for Rebuilding Ukraine. Columbia Journal of Transnational Law, 61(3), 641–732. https://dx.doi.org/10.2139/ssrn.4183023
Caprile, A., & Cirlig, C.-C. (2025). EU sanctions against Russia 2025: State of play, perspectives and challenges (Briefing No. PE 767.243). European Parliamentary Research Service. https://www.europarl.europa.eu/RegData/etudes/BRIE/2025/767243/EPRS_BRI(2025)767243_EN.pdf
Case C-393/19, ECLI:EU:C:2021:8. https://surl.li/hnnvkm
Chernohorenko, I. (2023). Seizing Russian assets to compensate for human rights violations in Ukraine: Navigating the legal labyrinth. European Papers, 8(3), 1067–1075. https://doi.org/10.15166/2499-8249/702
Congress of US. (2023, February 27). A bill to authorize the confiscation of assets of the Russian Federation and the use of such assets to offset costs to the United States of assistance to Ukraine. https://www.congress.gov/bill/118th-congress/senate-bill/536/text
Council of Europe. (2024, September 29). Register of Damage for Ukraine. https://rd4u.coe.int/en/timeline
Council Regulation (EU) No. 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. http://data.europa.eu/eli/reg/2014/269/oj
Council Regulation (EU) No. 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. https://eur-lex.europa.eu/eli/reg/2014/833/oj/eng
Directive 2014/42/EU of the European Parliament and of the Council of 3 April 2014 on the freezing and confiscation of instrumentalities and proceeds of crime in the European Union. http://data.europa.eu/eli/dir/2014/42/oj
Directive (EU) 2024/1226 of the European Parliament and of the Council of 24 April 2024 on the definition of criminal offences and penalties for the violation of Union restrictive measures and amending Directive (EU) 2018/1673. http://data.europa.eu/eli/dir/2024/1226/oj
Dornbierer, A. (2023). From sanctions to confiscation while upholding the rule of law. Working Paper 42, Basel Institute on Governance. https://baselgovernance.org/publications/wp-42
Douglas, Z. (2012). State immunity for the acts of state officials. British Yearbook of International Law, 82(1), 281–348. https://doi.org/10.1093/bybil/brs002
European Commission. (2022, March 17). Enforcing sanctions against listed Russian and Belarussian oligarchs: Commission’s ‘Freeze and Seize’ Task Force steps up work with international partners. Press Release. https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1828
European Commission. (2024, October 26). Commission welcomes the consensus reached by G7 partners to collectively provide €45 billion in financial assistance to Ukraine. Press Release. https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5473
European Convention for the Protection of Human Rights and Fundamental Freedoms, 1950. https://www.echr.coe.int/documents/d/echr/convention_ENG
European Convention on State Immunity, 1972. https://rm.coe.int/16800730b1
European Council (2024, February 12). Immobilised Russian assets: Council decides to set aside extraordinary revenues. https://www.consilium.europa.eu/en/press/press-releases/2024/02/12/immobilised-russian-assets-council-decides-to-set-aside-extraordinary-revenues/
European External Action Service. (2024, May 21). Commission delivers further €1 billion to Ukraine under its part of G7 loan to be repaid with proceeds from immobilised Russian assets. https://www.eeas.europa.eu/delegations/ukraine/commission-delivers-further-%E2%82%AC1-billion-ukraine-under-its-part-g7-loan-be-repaid-proceeds-immobilised_en
Finke, J. (2010). Sovereign immunity: Rule, comity or something else? European Journal of International Law, 21(4), 853–881. https://doi.org/10.1093/ejil/chq068
Government of Canada. (2011). Freezing Assets of Corrupt Foreign Officials Act, S.C. 2011, c. 10. https://www.canlii.org/en/ca/laws/stat/sc-2011-c-10/latest/sc-2011-c-10.html
Hafner, G., & Köhler, U. (2004). The United Nations Convention on jurisdictional immunities of states and their property. Netherlands Yearbook of International Law, 35, 3–49. https://doi.org/10.1017/S0167676804000030
Hathaway, O. A., Mills, M. M., & Poston, T. M. (2024). War reparations: The case for countermeasures. Stanford Law Review, 76(5), 971–1050. https://ssrn.com/abstract=4548945
Heß, B. (1993). The International Law Commission’s draft convention on the jurisdictional immunities of states and their property. European Journal of International Law, 4(2), 269–282. https://doi.org/10.1093/oxfordjournals.ejil.a035830
Hrysko, A. (2022, December 1). Russia on Reparations: ‘The West Just Wants to Steal Money’. Ukraine World. https://ukraineworld.org/en/articles/analysis/russia-reparations
Institute of Legislative Ideas. UK. (2023, June 1). Introduction of confiscation of Russian assets in Poland. https://confiscation.com.ua/en/news/Poland_russian_assets/
International Court of Justice. (2012). Jurisdictional Immunities of the State (Germany v. Italy: Greece intervening), Judgment of 3 February 2012. https://icj-cij.org/case/143
International Covenant on Civil and Political Rights, 1966. https://treaties.un.org/doc/treaties/1976/03/19760323%2006-17%20am/ch_iv_04.pdf
Kamminga, M. T. (2023). Confiscating Russia’s frozen central bank assets: A permissible third party countermeasure? Netherlands International Law Review, 70, 1–17. https://doi.org/10.1007/s40802-023-00231-7
Kilchling, M. (2023). Beyond freezing? The EU’s targeted sanctions against Russia’s political and economic elites, and their implementation and further tightening in Germany. Eucrim, 2, 136–144. https://doi.org/10.30709/eucrim-2022-008
Kokott, J. (2023). EU Sanctions against Russia and the Rule of Law. Zeitschrift fur Europarechtliche Studien, 26(1), 3–12. https://doi.org/10.5771/1435-439X-2023-1-3
Kyiv School of Economics (2024, February 12). $155 billion — the total amount of damages caused to Ukraine’s infrastructure due to the war, as of January 2024. https://kse.ua/about-the-school/news/155-billion-the-total-amount-of-damages-caused-to-ukraine-s-infrastructure-due-to-the-war-as-of-january-2024/
Longobardo, M. (2021). State immunity and judicial countermeasures. European Journal of International Law, 32(2), 457–484. https://doi.org/10.1093/ejil/chab013
Moiseienko, A. et al. (2022, July 22). Frozen Russian Assets and the Reconstruction of Ukraine: Legal Options. https://dx.doi.org/10.2139/ssrn.4149158
Moiseienko, A. (2022). The future of EU sanctions against Russia: Objectives, frozen assets, and humanitarian impact. Eucrim, 2, 130–136. https://doi.org/10.30709/eucrim-2022-008
Moller-Nielsen, T. (2025, March 25). Use frozen Russian assets for Ukraine reparations, says Costa. Euractiv. https://www.euractiv.com/section/economy-jobs/news/use-frozen-russian-assets-for-ukraine-reparations-says-costa/
Murphy, C. M. (2024, March). Freezing and confiscation of criminal money. European Parliament Research Service. https://www.europarl.europa.eu/RegData/etudes/ATAG/2024/759610/EPRS_ATA(2024)759610_EN.pdf
Obasun, O. (2024). Sanctioning of Russian central bank assets and consequential impacts on other central banks and international trade and investments. African Journal of Business Management, 18(6), 123–135. https://doi.org/10.5897/AJBM2024.9535
Panzavolta, M. (2017). Confiscation and the concept of punishment: Can there be a confiscation without a conviction? In Chasing Criminal Money: Challenges and Perspectives on Asset Recovery in the EU (pp. 25–52). Hart Publishing. https://doi.org/10.5040/9781509912087.ch-001
Payne, J., & Strupczewski, J. (2024, January 23). EU unlikely to confiscate Russian central bank assets officials. Reuters. https://www.reuters.com/world/europe/eu-unlikely-confiscate-russian-central-bank-assets-officials-2024-01-23/
Regulation (EU) 2018/1805 of 14 November 2018 on the mutual recognition of freezing orders and confiscation orders. http://data.europa.eu/eli/reg/2018/1805/oj
Reinisch, A. (2006). European court practice concerning state immunity from enforcement measures. European Journal of International Law, 17(4), 803–836. https://doi.org/10.1093/ejil/chl027
Riigikogu. (2024). Rahvusvahelise sanktsiooni seadus [International Sanctions Act], RT I, 07.06.2024, 20. https://www.riigiteataja.ee/akt/RSanS
Sorgi, G. (2025, May 12). UK wants more say over fate of €200B in frozen Russian assets. Politico. https://www.politico.eu/article/uk-frozen-russian-assets-war-in-ukraine-belgium-euroclear/
Statista. (2022, March). Value of assets of the Bank of Russia frozen due to sanctions due to the war in Ukraine as of March 2022, by country. https://www.statista.com/statistics/1298593/frozen-assets-of-bank-of-russia-by-country/
Stephan, P. B. (2022). Seizing Russian assets. Virginia Public Law and Legal Theory Research Paper No. 2022-40. Capital Markets Law Journal, 17. https://ssrn.com/abstract=4129862
Stewart, D. P. (2011). The UN convention on jurisdictional immunities of states and their property. Vanderbilt Journal of Transnational Law, 44, 1047–1071. https://doi.org/10.2307/324609
The Guardian. (2024). MPs urged to change aw so frozen Russian assets can help aid Ukraine. https://www.theguardian.com/politics/article/2024/may/14/mps-urged-to-change-law-so-frozen-russian-assets-can-help-aid-ukraine
Tribe, L. H. et al. (2023, September 17). The Legal, Practical, and Moral Case for Transferring Russian Sovereign Assets to Ukraine. https://rdi.org/wp-content/uploads/2023/09/2023.09.17-MPP-Report.pdf
Tsybulenko, E., & Platonova, A. (2019). Violations of freedom of expression and freedom of religion by the Russian Federation as the occupying power in Crimea. TalTech Journal of European Studies, 9(3), 134–147. https://doi.org/10.1515/bjes-2019-0026
Tsybulenko, E., & Rinta-Pollari, H. (2023). Legal challenges in prosecuting the crime of aggression in the Russo-Ukrainian war. Review of Central and East European Law, 48(3–4), 319–350. https://doi.org/10.1163/15730352-bja10087
United Nations Convention against Corruption, 2003. https://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf
United Nations Convention on Jurisdictional Immunities of States and Their Property, 2004. https://legal.un.org/ilc/texts/instruments/english/conventions/4_1_2004.pdf
United Nations. (2001). Draft articles on the responsibility of states for internationally wrongful acts, with commentaries (A/56/10). https://legal.un.org/ilc/texts/instruments/english/commentaries/9_6_2001.pdf
United Nations Office on Drugs and Crime. (2011). Mechanism for the review of implementation of the United Nations Convention against Corruption: Basic documents. United Nations. https://www.unodc.org/documents/treaties/UNCAC/Publications/ReviewMechanism-BasicDocuments/Mechanism_for_the_Review_of_Implementation_-_Basic_Documents_-_E.pdf
Vienna Convention on Diplomatic Relations. United Nations Treaty Series, 1961. https://legal.un.org/ilc/texts/instruments/english/conventions/9_1_1961.pdf
Vučić, M. (2024). Illegal aspects of the proposed seizure of Russian central bank assets. In D. Proroković, P. Sellari, & R. Mifsud (Eds.), Global Security and International Relations after the Escalation of the Ukrainian Crisis (pp. 221–239). Institute of International Politics and Economics. https://doi.org/10.1007/978-86-7067-328-1
Webb, P. (2024). Legal options for confiscation of Russian state assets to support the reconstruction of Ukraine (Study No. PE 759.602). European Parliamentary Research Service. https://www.europarl.europa.eu/RegData/etudes/STUD/2024/759602/EPRS_STU(2024)759602_EN.pdf
Weigend, T. (2013). There is only one presumption of innocence. Netherlands Journal of Legal Philosophy, 3, 193–204. https://doi.org/10.5553/NJLP/221307132013042003003
Wycichowski-Kuchta, G. (2023). The discretion of the EU member states in shaping the non-conviction based confiscation regime in the light of CJEU and ECHR case law. Ruch Prawniczy, Ekonomiczny i Socjologiczny, 4, 27–46. https://doi.org/10.14746/rpeis.2023.85.4.02
