EU heavyweights call on Brussels to reignite frozen Russian asset debate
Ukraine already faces a €23 billion hole in its defense budget.
The Netherlands, Poland, Spain, and Sweden have urged the European Union to re-engage in discussions about utilizing Russia's frozen state assets to alleviate Ukraine's budgetary crisis. In a letter obtained by POLITICO, the four nations urged European Commission foreign policy chief Kaja Kallas and Irish Foreign Minister Helen McEntee to revisit the contentious matter before an upcoming informal gathering of EU foreign ministers in Wicklow, Ireland.
The letter, dated August 27, reinforces prior calls to rekindle the debate over Russia's immobilized assets as Ukraine's defense funding gap reaches €23 billion. In their letter, the four heavyweights emphasized that Ukraine needs financial assistance in both the short and long term, urging the EU to consider leveraging the €210 billion in frozen Russian assets to bolster Kyiv's war-torn economy.
EU leaders previously failed to reach an agreement on a plan to utilize the frozen assets, with Belgium refusing to proceed without unlimited guarantees to protect itself against potential legal and financial repercussions from Moscow. Instead, EU leaders opted to finance a €90 billion loan to Ukraine by tapping into common debt markets, with the funds to be disbursed over the next 18 months contingent upon Ukraine implementing necessary reforms.
Zelenskyy has requested the EU to pre-fund the money upon delivery, a request that may prove challenging as all EU members must agree to the terms without prior Ukrainian reform implementation. The letter noted the complexity of the issue and the need to find solutions that account for the legitimate interests of all EU members, emphasizing that the risk should be shared among all participating nations.
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