Would handing frozen Russian assets to Ukraine be better than reparations?

Seizing funds would help finance reconstruction and act as a deterrent, but it could let Putin paint himself as the victim

The debate over using frozen Russian assets to fund Ukraine's reconstruction is coming to a head. The arguments in favor are compelling. The objections are weak. But there could also be unintended consequences.

Canada has passed legislation allowing Russian assets to be redeployed on behalf of Ukraine. In the US, four members of Congress have introduced legislation to repurpose sovereign Russian assets for Ukraine. And EU leaders considered the issue at their recent summit, though Olaf Scholz and others expressed concern that any such action might violate international law.

Barry Eichengreen is professor of economics at the University of California, Berkeley, and a former senior policy adviser at the IMF.