Finally someone writes what should have been the obvious approach to using frozen russian assets for Ukraine's support: issue bonds with those assets as the collateral, use their interest proceeds to service the debt.
Eventually russia will lose and international courts will decide on reparations, which will settle the matter. But until then, this is what the debt market exists for.
https://www.economist.com/leaders/2024/02/28/how-to-put-russias-frozen-assets-to-work-for-ukraine?utm_medium=social-media.content.np&utm_source=twitter&utm_campaign=editorial-social&utm_content=discovery.content
@osma
Issuing bonds with the Russian assets is not what is proposed, the collateral would still be EU assets.
Instead the idea is to service the bond payments using the interest on the Russian money, which makes putting in a collateral 'risk free', because the interest from the held assets would always cover the dues.
"The flow of income from Russia’s assets will continue. The EU could therefore launch and guarantee a vehicle whose debts are serviced using the income from Russia’s funds."
