"EU Leaders Endorse Seizing Russian Assets to Arm Ukraine, Despite Opposition from Western Banks and Some Member States"
Western banks are concerned about EU plans to redistribute interest earned on frozen Russian assets, fearing potential litigation and erosion of trust in the banking system. The EU proposal aims to use the funds to supply arms to Ukraine, with some banks worried about being held liable by Russia and the wider implications for the banking system. Russia has warned of legal action and damage to property rights, while industry sources are seeking legal advice on indemnities to participate in the plan. The proposal has raised concerns about compliance with sanctions and potential misalignment between the EU, Britain, and the United States.