Explainer: Why Russia's frozen assets are Europe's hot topic once again
BRUSSELS, Belgium — Months after the idea was thought to have been laid to rest, some EU capitals are reviving the push to use 200 billion euros ($233 billion) in Russian assets, frozen in the bloc since 2022, to support Ukraine. The bloc's 27 countries are straining under the financial burden of bankrolling Ukraine, essentially on their own, while Kyiv is facing a massive budget hole amid…
Since 2022, the European Union has held approximately 200 billion euros in frozen Russian assets, primarily in Belgium. These funds have been used in various ways to support Ukraine, but the exact mechanism for utilizing them remains unclear. The European Commission has been working on a proposal to force the Belgium-based Euroclear clearing house to provide an interest-free loan to the EU, using the assets as collateral.
The idea has gained traction among some EU countries, including Sweden, the Netherlands, Poland, and Spain, who argue that using the frozen assets could alleviate the financial burden on European taxpayers and ensure that Russia pays for the damage caused in Ukraine. However, concerns remain about legal and political risks, as well as the potential for Russia to retaliate against countries involved in the process.
Despite these challenges, discussions are ongoing, with the hope of finding a viable solution to support Ukraine without jeopardizing EU-West relations.
Written by urgent.news from Kyiv Independent's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
