Key facts
- Four EU nations—Sweden, the Netherlands, Poland, and Spain—have written to EU officials urging a renewed discussion on using frozen Russian assets for Ukraine.
- The proposal aims to address Ukraine's significant defense funding shortfall, estimated at €23 billion.
- The EU has immobilized approximately €210 billion of Russian central bank assets.
- Previous EU plans to use these assets were dropped due to concerns, particularly from Belgium, about potential lawsuits and damages from Russia.
- The current proposal suggests exploring new options and sharing risks equitably among member states.
Four European Union member states—Sweden, the Netherlands, Poland, and Spain—have jointly urged Brussels to reconsider leveraging frozen Russian state assets to help fund Ukraine's defense. The call comes in a letter addressed to EU foreign policy chief Kaja Kallas and Irish Foreign Minister Helen McEntee, ahead of an informal meeting of EU foreign ministers on September 1-2.
The initiative seeks to address Ukraine's substantial defense funding gap, estimated at €23 billion, which current EU loan packages may not fully cover. Russia has approximately €210 billion in state assets frozen within the EU, with about €185 billion held by Euroclear. Previous attempts to utilize these funds were hampered by concerns, particularly from Belgium, regarding legal risks and the need for comprehensive risk-sharing guarantees from other member states. The current proposal acknowledges these complexities and aims to find solutions that distribute the risks equitably across the EU, potentially by involving the European Commission's technical experts.
Polish Foreign Minister Radoslaw Sikorski stated that the money would be better used to stop Russian aggression rather than wait for reconstruction after the war ends.