Lagarde clarifies on Russian assets: “ECB will help Kyiv, but without violating treaties”

Brussels – The European Central Bank does not support using Russia’s assets frozen in the EU to finance Ukraine. This was made clear by the President of the ECB, Christine Lagarde, who explained that the issue is not political but legal. “We will do everything we can to help Ukraine, but without violating the treaties,” she explains during the hearing in the Committee on Economic and Monetary Affairs of the European Parliament. 

“For the ECB to act as a financial guarantee parachute for Belgium would be to violate Article 123 of the treaties,” she pointed out from a strictly legal point of view. The European Central Bank cannot provide direct financing to companies or institutions, nor can it act as a guarantor for governments. Lagarde then emphasised, “We are not refusing, we are following the rules.” She added: “We cannot bypass the treaties and the financial stability mandate.” 

So it will support Kyiv, provided the work of the Frankfurt institution is not questioned. A clarification that Lagarde offered after more than an hour of hearing, when the Finnish socialist Eero Heinaluoma finally broke the deadlock by asking the question about what he did not hesitate to call “the elephant in the room”. 

The ECB president’s hearing was preceded by the announcement of Frankfurt’s “no” to the idea of loans to Kyiv through assets immobilised  in EU territory, the number one option the European Commission has aimed at to meet the financial needs of Kyiv, whose state coffers are likely to be empty by next spring. That is why there was anticipation to hear Lagarde herself explain the ECB’s position. Now clearer.