Ukraine renews push for Russia’s frozen assets

DUBLIN — Ukraine is urging European nations to reopen discussions on using Russia's frozen state assets, with Deputy Prime Minister Vsevolod Chentsov suggesting a partial release of funds and broader guarantees could help resolve the standoff with Belgium, which vetoed the plan in December. Chentsov noted that Ukraine is exploring various options with European partners to address budget shortfalls in defense and civilian spending.

He mentioned front-loading part of the EU’s €90 billion loan to Ukraine as one possibility, but stressed it wouldn't be the sole solution. Chentsov proposed leveraging Russia's immobilized state assets to generate revenue and cover debt, a notion that gained traction after the Netherlands, Poland, Spain, and Sweden urged the European Commission to explore "new options" for unlocking these assets.

Valued at over €200 billion, most of these assets are held by Belgium-based financial depository Euroclear. Belgium's resistance stems from potential legal and financial risks it might incur if Russia retaliates or faces litigation. Chentsov emphasized that Kyiv's renewed appeal underscores the urgency of finding additional funds for Ukraine, which faces a significant budget deficit amid Russia's ongoing full-scale invasion in its fifth year.

He called on the EU and Ukraine to consider alternative solutions, such as different funding figures, to secure at least partial release of Russian assets. Chentsov added that other players besides the EU could aid in addressing Belgium's concerns. However, Belgium remains steadfast in its stance, with a spokesperson for Foreign Minister Maxime Prévot reiterating the same position.

The European Commission recently addressed the frozen assets issue, with spokesperson Paula Pinho reaffirming Brussels' focus on disbursing the loan funds.