ECB President Christine Lagarde said that any scheme to use frozen Russian assets to support Ukraine must adhere to international law. The European Commission is currently suggesting using €170B of frozen Russian assets to help Ukraine by investing these funds in zero-coupon EC bonds backed by EU countries, and to provide the resulting resources to Kyiv as a reparation loan. Lagarde emphasized that all these steps must fully follow international rules to protect the euro’s reputation and attract investors. Additionally, the decision must be agreed upon by all parties holding Russian assets. The Austrian government supports the EC’s proposal but is awaiting the legal text for review. The European Commission believes it has found a viable solution that avoids asset confiscation while still providing support for Ukraine. To provide Kyiv with a reparation loan, the EC is considering altering the sanctions regime related to frozen Russian assets. Currently, sanctions are renewed every six months, which might not be sufficient to secure the loan. The possibility of bypassing the principle of unanimity in decision-making is also being explored.