Key facts
- Ukraine's Foreign Minister Andrii Sybiha proposed the EU use frozen Russian assets to fund Kyiv's defense.
- Sybiha stated Russia, not European taxpayers, should pay for the damage caused by the war.
- The G7 immobilized roughly €300 billion in Russian central bank reserves in 2022, with about €210 billion in the EU.
- Belgium has rejected proposals to use these assets to back loans for Ukraine.
- Sybiha suggested placing the assets under collective EU control to share risks and liability.
Ukraine's Foreign Minister Andrii Sybiha has called on the European Union to utilize frozen Russian assets to fund Kyiv's defense, arguing that this approach would alleviate domestic political pressure and demonstrate that Russia is bearing the cost of its aggression.
In an opinion piece for POLITICO, Sybiha stated, “Russia, not European taxpayers, must be the first to pay for the damage it has caused and continues to cause.” He believes using these assets would reassure "skeptical audiences across Europe" ahead of significant elections in countries like France and Italy in 2027, where political figures such as Marine Le Pen have pledged to halt aid to Ukraine.
The G7 nations collectively froze approximately €300 billion in Russian central bank reserves in 2022, with a substantial portion, around €210 billion, held within the EU, primarily at the Belgian financial institution Euroclear. Despite previous proposals, Belgium, with support from Italy, has resisted using these immobilized funds to back loans for Ukraine, citing potential legal and financial risks, as well as the possibility of Russian retaliation.
However, the initiative has seen renewed support over the summer, with Sweden, the Netherlands, Poland, and Spain advocating for the European Commission to reconsider the matter and find solutions to Belgium's objections. Belgium has, however, maintained its stance against the proposal.
Sybiha addressed Belgium's concerns by proposing that Ukraine's finance ministry suggested placing the assets under collective EU control. This, he argued, would distribute the decision-making power and any associated liability among member states. "Belgium’s exposure is a reason to share the risk, not to do nothing," Sybiha asserted.
He also countered arguments that utilizing these reserves could jeopardize the euro's credibility or diminish Europe's negotiating power in future peace talks. Sybiha contended that the euro's strength is contingent on Europe's commitment to defending principles and order, and that the true leverage lies in the deployment of the frozen assets, not merely their retention. Furthermore, he dismissed fears of Russian retaliation against Western companies, noting that Moscow has already seized European business assets, and that immobilizing the funds has not deterred such actions.
Sybiha highlighted Russia's plan to allocate a record €180 billion to its military in 2027, an increase of over 40% from 2026. He urged EU leaders to act decisively this autumn, warning that delays would prolong the conflict and escalate the costs associated with defending Ukraine.