Marking one year of the full-scale Russian aggression, the European Parliament has adopted a resolution. It calls on the EU states to increase the sanctions pressure on the aggressor and finally to pass legislation allowing to confiscate frozen Russian assets.

The MEPs also point out that the Russian war of aggression has fundamentally changed the geopolitical situation in Europe, "which necessitates bold, brave and comprehensive political, security and financial decisions by the EU."

The call of the European Parliament should stimulate EU leaders to deal with the confiscation of frozen Russian assets, which they are still avoiding. According to the column of DiXi Group project expert Olena Pokanevych, Punishment with confiscation: how to speed up alienation of Russian assets in Europe (Ukr).

On February 14, the EU Council set up a working group to examine whether frozen Russian assets can be used to rebuild Ukraine. The EU Working Group should conduct legal, financial, economic, and political analysis.

Part of the preparatory work will also include getting a clearer picture of where Russian state assets are located and their total amount.

The author of the column reminds that the EU leaders, on February 10, stated that despite certain steps taken by European institutions and individual countries in this direction (primarily Estonia), the majority of EU member states have not yet reached unity on the mechanisms of confiscation of Russian assets in their jurisdictions.

"The problem is that in most EU member states, confiscation of frozen Russian assets is legally possible only if there is a criminal conviction," Pokanevich notes.

Therefore, as a first step, the expert writes, the European Union considers combining these assets at the EU or international level, aiming at obtaining profits that could be used to fund Ukraine's rebuilding.

"Meanwhile, the EU leaders' step confirms that they do not yet know exactly how many Russian sovereign assets are seized in European banks. They intend to find everything out. No wonder the tenth EU sanction package, in particular, foresees sanctions on those banks that do not report how many Russian assets they have seized," the author of the column suggests.

For its part, Ukraine should also suggest the EU become more active, Olena Pokanevych is sure.

First, to set up an effective mechanism to encourage the implementation of the "EU Sanctions Whistleblower Tool." It should be used to report "past, current or planned" violations of EU sanctions and attempts to circumvent them.

Second, to develop, approve and implement the concept of secondary sanctions against third parties that contribute to the destabilisation of Ukraine or benefit from interaction with the Russian authorities.

Third, review and block existing legal loopholes in EU member states that allow unfreezing of assets controlled by oligarchs and other individuals linked to Russian aggression.

The Council of the European Union amended the EU Council Regulation No. 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine more than ten times.

However, loopholes remain, states the author of the column.

"So, it has been a year of the war and it's time to review the amendments.

In addition, we need harsher international pressure (EU and US) on "financial secrecy" jurisdictions such as the British Virgin Islands (BVI), Liechtenstein and Panama, where the assets of Russian oligarchs are known to be physically located and owned by them.

"The wasps' nests of hidden Russian money must be found," the expert summarises.