Should the EU permanently confiscate frozen Russian state assets to fund the reconstruction of Ukraine?

Following the 2022 invasion of Ukraine, Western allies immobilized roughly €260 billion in Russian central bank reserves, with the vast majority held in the Belgium-based clearinghouse Euroclear. While there is strong political desire to make Moscow pay for Ukraine's staggering reconstruction costs, financial institutions like the European Central Bank have warned that outright confiscation could trigger capital flight from global investors who fear their own reserves might be seized next. Proponents argue that using these funds is a moral imperative and the only realistic way to…   rebuild Ukrainian infrastructure without heavily taxing European citizens. Opponents argue that violating the international legal principle of sovereign immunity sets a dangerous precedent that could destabilize the global financial system and deter foreign investment in the Eurozone.