Arya News - Japan has snubbed the EU’s pitch to tap illegally frozen Russian assets held on its soil to fund Ukraine, according to European media reports.
Japanese Finance Minister Satsuki Katayama ruled out using the roughly $30 billion worth of frozen Russian assets due to legal concerns, two EU diplomats reportedly said. Several officials claim, however, that Japan’s stance aligns with the objections of its ally, the US, to the move. At the G7 meeting, the US indicated it will end support for Ukraine after completing the final installments of a 2024 G7-wide loan negotiated by the Biden administration, according to one EU diplomat. The European Commission wants EU capitals to strike a deal on using up to €210 billion of this cash before a leaders’ summit on Dec. 18. Belgium, where a huge portion of the frozen Russian assets is held by Euroclear, remains the main obstacle to the EU plans. Belgian PM Bart De Wever opposes using the assets to loan money to Ukraine, fearing Europe"s finance and banking system could lose its credibility. Responsibility for the possible seizure of Russian assets will be shared by individuals and entire countries, Kremlin spokesman Dmitry Peskov said. Peskov also recalled that the International Monetary Fund (IMF) opposed the seizure of Russian assets and urged caution to avoid negative repercussions on the international financial system.