Western allies are considering whether to allow Russian oligarchs to buy their way out of sanctions and using the money to rebuild Ukraine, reported by Associated Press, citing government officials familiar with the matter.
The officials says that Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland proposed the idea at a G-7 finance ministers’ meeting in Germany last week.
Freeland raised the issue after oligarchs spoke to her about it, one official said. Also mentioned that the Ukrainians were aware of the discussions. The official said it’s also in the West’s interests to have prominent oligarchs dissociate themselves from russian president vladimir putin while at the same time providing funding for Ukraine.
“We would not be talking about this if there wasn’t some comfort on the part of the Ukrainians,” the official said. “We need to know that it works for them, too.”
They stressed that as of now this is just an idea. The West is discussing how to confiscate assets and provide funds to Ukraine.
Freeland's proposal could help avoid legal obstacles for the authorities of countries such as Germany, where the bar for confiscating frozen assets is very high. If the oligarchs voluntarily gave up a share of their wealth abroad, they would rid Western governments of the risk of the courts refusing to approve the confiscation.
The EU has frozen the assets of more than 1,000 people, including 30 oligarchs, in response to Russia's invasion of Ukraine. According to the European Commission, almost 10 billion euros have been frozen in the European Union.