The Battle for Russian Assets: ECB Losing Ground Under Pressure from Allies.

European politicians are considering the possibility of confiscating 200 billion euros of reserves from the Russian Central Bank located in Belgium. This initiative is a result of the cash shortage and significant debt of the Eurozone countries.

The European Central Bank usually warns against aggressive actions against reserves, arguing that such actions could damage the reputation of the euro in the global market. However, Martins Kazaks, the governor of the Bank of Latvia and a member of the ECB Council, supported the idea of confiscation as a way to help Ukraine in its fight for freedom and against aggression.

'The comments that have come from a country on the front line of Europe with Russia acknowledge that more radical actions are needed, even at the cost of another shock to global markets. They hint that the rapidly changing reality on the ground may force Frankfurt to reach a new consensus. According to one person familiar with the situation, in addition to Kazaks, officials from other central banks in the Baltic countries are also privately endorsing direct confiscation, even if their official position differs,' the publication states.

Several anonymous Eurosystem officials acknowledged that Trump’s departure from Europe weakened their position, and they are ready to agree to any decision made by politicians.

ECB President Christine Lagarde is trying to maintain her position by warning about legal risks, but acknowledges that the decision ultimately rests with the governments.