Legal basis matters for moves on Russian assets, Lagarde says

FRANKFURT, March 6 (Reuters) - European Central Bank President Christine Lagarde said on Thursday she expected any decision by Western countries on what to do with currently-frozen Russian assets would take into account international law.

European leaders want to use $300-350 billion of Russian assets - mostly European, U.S. and British government bonds - to help rebuild Ukraine, but are yet to agree on how to avoid legal challenges or set a problematic international precedent.

The ECB has long raised concerns about how such a move could affect investors' willingness in future to hold assets in euros.

"This is not for the European Central Bank to debate, but I would certainly submit that the international law basis on which any decision is made will matter as far as other investors are concerned," she told a press conference after the bank's rate-setting meeting.

"It is, I'm sure, an element that will be taken into account by those whose job it is to make those ultimate decisions," she added.