EU sanctions and Russia's frozen assets

List of abbreviations v

Executive summary vi

Note on terminology x

1 Introduction 1

1.1 Methodological approach 5

2 Russia’s obligation to pay reparations under international law 6

3 EU sanctions and the frozen and immobilised Russian assets 9

4 Overview of existing policies, measures and legal arguments under EU law 19

4.1 Frozen private assets 19

4.2 Windfall profits – Profits stemming from extraordinary revenues generated by the immobilised assets 23

　4.2.1 Measures taken at the national level 24

　4.2.2 Measures taken at the EU level 24

4.3 Immobilised state assets 28

　4.3.1 Immunities and the assets of the Central Bank of Russia (CBR) 30

　4.3.2 Application of immunities to executive actions, such as sanctions 32

　4.3.3 Third-party countermeasures 34

　4.3.4 Relationship between countermeasures and immunities 38

　4.3.5 Self-defence 43

　4.3.6 Exceptions to immunities before national courts and national legislation allowing for the confiscation of Russian assets 46

　4.3.7 Enforcement of Judgements of the European Court of Human Rights 48

5 The most viable policy proposals and legal options for the confiscation of Russian State assets 51

5.1 Policy proposals and legal options under EU law 51

　5.1.1 Anti-Coercion Instrument 51

　5.1.2 Article 7 TEU procedures 52

　5.1.3 Unilateral sanctions of Member States 53

　5.1.4 Establishment of a European Instrument (reparations loan) 54

5.2 Viable legal options under international law 58

　5.2.1 International reparations mechanism and enforcement of international reparations and compensation decisions through the European Instrument 58

　5.2.2 Possible utilisation of assets as part of a peace agreement or as collateral for the payment of reparations 62

6 Possible legal actions against CSDs, States and the EU 66

7 Conclusions and recommendations 69

Annex 1: Overview of Arguments 73

Bibliography 78