• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
Ukraine invasion
Europe

EU’s top diplomat wants to rebuild Ukraine using Russia’s frozen cash—but would that be legal?

By
David Meyer
David Meyer
Down Arrow Button Icon
By
David Meyer
David Meyer
Down Arrow Button Icon
May 9, 2022, 10:47 AM ET
Add Fortune on Google for similar content.

The European Union’s foreign affairs chief has backed the idea of seizing Russia’s frozen foreign exchange reserves and using them for Ukraine’s eventual reconstruction.

Ukrainian economists reckon Russia’s invasion is causing $4.5 billion of infrastructural damage each week in their country, and estimate a potential total bill of $600 billion.

Using Russia’s frozen reserves to help pay for this damage would be “full of logic,” Josep Borrell Fontelles, a vice president of the European Commission, told the Financial Times in an interview published Monday.

This would certainly be in line with what Ukraine has been calling for. However, it remains unclear whether the permanent seizure and redistribution of the frozen funds—which amount to over $300 billion—would be legal.

Borrell’s enthusiasm appears to be based on what he sees as a precedent set by the U.S.’s seizure earlier this year of $7 billion in frozen Afghan assets—half of which would go to humanitarian relief within Taliban-run Afghanistan, with the other half compensating victims of the Taliban-linked Sept. 11, 2001, attacks on the U.S.

“We have the money in our pockets, and someone has to explain to me why it is good for the Afghan money and not good for the Russian money,” Borrell told the FT.

But the Biden administration’s seizure of those Afghan funds was enormously controversial—indeed, it was characterized as theft by some Afghan-American activists and Western legal commentators.

It was also based on a very U.S.-specific set of legal circumstances, in which a group of 9/11 victims’ families and legal representatives won the right to $6 billion in damages from the Taliban a decade ago.

The default judgment was seen as a symbolic ruling at the time, but after the Taliban regained control over Afghanistan last year, it became central to the White House’s seizure decision in February.

There is as yet no analogous ruling to point to in the case of Russia’s frozen reserves, and the European Commission does not yet have any explanation for how those funds might be legally redistributed.

“[Borrell] was making the comment on one of a number of possibilities which are currently being discussed regarding the frozen Russian assets—no decision was taken about this issue at the EU level at the moment,” a Commission spokesperson told Fortune on Monday.

The legal quagmire is certainly apparent to Charles Michel, the president of the European Council—a group of EU national leaders, who set the bloc’s political direction.

In an interview with the Interfax-Ukraine news agency last week, Michel said he was “personally convinced” it would be the right thing to confiscate the frozen assets of Russian oligarchs and use them to rebuild Ukraine, but “because by a profession I use to be a lawyer, I recognized that legal level is not so simple.” For a start, he said, the EU’s 27 member states have different laws on such things.

“I instructed the legal service of the Council to prepare some possible ideas in order to find [a] legal solution in line with the principles of rule of law, that would facilitate and make possible the confiscation of the assets of the people who are sanctioned by the EU or by other countries in the world,” Michel said.

“In my opinion, this is question of fairness,” he added.

It’s worth noting that the Biden administration also tried to seize and liquidate Russian oligarchs’ assets via new legislation, but the bill was watered down following opposition from the American Civil Liberties Union, among others; the ACLU said it was unconstitutional in its original form, and a defeat in the courts may have handed Russia a propaganda victory.

Russia is adamant that, if Borrell’s plan were to become reality, there would be blowback.

“This is the destruction of the mere foundation of international relations, and these decisions, should they be taken, will hit the Europeans themselves, the financial system, and will undermine trust in Europe and in the West in general because this is an absolutely unlawful act and more like the law of the jungle,” Deputy Foreign Minister Alexander Grushko told Russian media on Monday.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Author
By David Meyer
LinkedIn icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in

Current price of gold as of July 21, 2026
Personal Financegold prices
Current price of gold as of July 21, 2026
By Danny BakstJuly 21, 2026
2 hours ago
va
North AmericaWhite House
HUD suspends disaster funding to U.S. Virgin Islands housing authority, saying mismanagement has kept $1.3 billion from hurricane survivors
By Danica Coto and The Associated PressJuly 21, 2026
2 hours ago
traffic
HealthAutos
Rich countries have cut road deaths by more than 30% in 30 years—but about 90% of fatal crashes now happen in poorer nations
By Mike Stobbe and The Associated PressJuly 21, 2026
2 hours ago
bird
EnvironmentAnimals
The rare ‘great conservation success story’ is happening off New England as $10 million over 10 years brings back the quirky oystercatcher bird
By Michael Casey and The Associated PressJuly 21, 2026
2 hours ago
kalshi
CryptoKalshi
Kalshi’s ‘chronically online’ war room figured out World Cup virality — and realized AI might be bringing back the monoculture
By Nick LichtenbergJuly 21, 2026
2 hours ago
wilt
Arts & EntertainmentAuction
Gen Z entrepreneur found a Wilt Chamberlain Lakers warm-up for $3.07 outside Portland — it was a $90,000 genuine article
By Claire Rush and The Associated PressJuly 21, 2026
2 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
21 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
1 day ago
Current price of oil as of July 20, 2026
Personal Finance
Current price of oil as of July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.