Key facts
- Several EU capitals are pushing to use 200 billion euros of frozen Russian assets to support Ukraine.
- The majority of these assets, approximately 180 billion euros, are held by Euroclear in Belgium.
- A new proposal suggests Euroclear could provide an interest-free loan to the EU, using the frozen assets as collateral.
- Previous attempts to utilize these assets faced strong opposition from Belgium due to fears of legal challenges and investor confidence.
- Ukraine faces a substantial budget deficit, highlighting the urgency for financial assistance.
European Union capitals are once again considering the use of approximately 200 billion euros in Russian assets frozen since 2022 to provide financial support to Ukraine. This renewed push comes as EU countries face increasing financial strain from bankrolling Ukraine and bolstering their own defenses against Russian aggression. The idea, previously shelved, is being revived by nations like Sweden, the Netherlands, Poland, and Spain, who argue that using these immobilized assets would ensure Russia pays for the destruction it has caused without burdening European taxpayers.
The frozen assets, primarily held by the Belgium-based clearing house Euroclear (around 180 billion euros), have been the subject of numerous legal challenges by Russia, all of which have failed. While some financial assistance has already been channeled to Ukraine through mechanisms like the G7's Extraordinary Revenue Acceleration (ERA) loan and a separate EU loan, these do not formally tie the principal frozen assets to repayment, leaving open the possibility of future repayment through other means.
The current proposal being discussed centers on a European Commission plan from late 2025. This plan suggests forcing Euroclear to provide an interest-free loan to the EU, using the frozen Russian assets as collateral. This approach aims to circumvent direct expropriation, which carries significant legal and political risks, including potential retaliation from Moscow through seizures of European company assets still operating in Russia.
Previous attempts to utilize these assets, notably by European Commission President Ursula von der Leyen in September 2025, were met with strong objections from Belgium's Prime Minister Bart De Wever. He feared that such measures could spook investors and make Belgium a target for Russian retaliation, a concern echoed by the European Central Bank. De Wever indicated a willingness to proceed if Belgium was shielded from legal and liquidity risks, and if other asset-holding countries committed similarly.
Despite these past challenges, proponents believe a workable solution may be achievable this time. The issues and objections are now well-known, and EU officials have confirmed the matter remains on the agenda. Luxembourg and France have signaled openness to pragmatic solutions, provided solidarity mechanisms are in place. The dire financial situation in Ukraine, with President Zelensky identifying a significant budget hole, further underscores the need for additional European support, making the utilization of frozen Russian assets a pressing topic once again.