According to Yahoo News, European Central Bank (ECB) Vice President Luis de Guindos stated that the potential reputational damage from using frozen assets to rebuild Ukraine prevents such a move. He emphasized that utilizing the dividends and interest from the frozen assets should be a global decision, ideally involving all members of the G-7. Additionally, he warned that this could lead to reputational damage and have implications for the euro as a safe currency.
The European Union is currently debating how quickly to pursue plans to apply a windfall tax on the profits generated by frozen Russian Central Bank assets and use those proceeds for Ukraine's reconstruction. However, the ECB has expressed concerns over such a move. Estimates suggest that more than €200 billion ($220 billion) of the sanctioned sovereign assets are in the EU. Guindos told the newspapers that the euro is the second most important currency in the world, and its long-term reputation must be considered. He believes there are other ways to finance the reconstruction of Ukraine.