EU agrees on sanctions for Navalny death as it moves forward on Russian assets’ seizure

European Union ministers have agreed to designate more than 30 individuals and organisations held responsible for Russian dissident Alexei Navalny’s death. The news comes as the  bloc’s foreign policy chief said there was ‘strong support’ for a decision to seize the revenues from Russia’s frozen assets and direct them toward military support for Ukraine.

‘We agreed to sanction those responsible for the murder of Alexei Navalny – [over] 30 individuals and entities – under the EU’s Global Human Rights Sanctions Regime,’ Josep Borrell said after a meeting of the bloc’s foreign ministers, 18 March. He said the ministers also agreed to another €5 billion in military support for Ukraine, explaining that most of it would come from seizing the profits from Russia’s sovereign assets that were frozen after Russia invaded Ukraine in February 2022.

‘Let’s be clear: we talk about the revenues. We talk about the windfall profits. We do not talk about the capital,’ Borrell said, as he broached the highly-controversial issue of capturing a state’s sovereign funds, a move that critics fear will hurt the long-term credibility of the European Union as a safe place for investment. ‘We talk about the revenues of this capital, which has been extraordinary. This is something that we have identified to put aside. Now the issue is to take it and to use it for the benefit of Ukraine.’

Explaining that some 90% of the seized revenues should go for military funding, Borrell said this was a two-step process, where the European Council would first agree on a regulation and then the European Commission would have to agree on implementation.

‘There are some Member States that want to have more details, but there is a strong support to take the revenues [from] the windfall profits and to use it to support Ukraine,’ Borrell remarked. He said the proposal was tabled ahead of a summit of the bloc’s leaders, 21-22 March. ‘I cannot say that there was unanimity but a strong consensus to take this decision.’

Some 70% of all Russian assets immobilised in the West is held in the Belgian central securities depository Euroclear, which has the equivalent of 190 billion euros ($206.1 billion) worth of various Russian central bank securities and cash, according to Reuters.