The original capital may need to be given back at some point in the future, that's the point.
Whereas interest/investing profits from the original capital are easier to legally and morally extract from the frozen assets, one assumes.
Almost every war ends with negotiated peace. Frozen assets will play part of that negotiation so if you've suddenly spent it all, you've just lost a bargaining chip.
redsquizza t1_iydh57j wrote
Reply to comment by CodeNCats in The EU is looking at seizing $330 billion in frozen Russian assets and investing them — with any profits going to Ukraine by KeenlyFirst
The original capital may need to be given back at some point in the future, that's the point.
Whereas interest/investing profits from the original capital are easier to legally and morally extract from the frozen assets, one assumes.
Almost every war ends with negotiated peace. Frozen assets will play part of that negotiation so if you've suddenly spent it all, you've just lost a bargaining chip.