EU Eyes Frozen Russian Assets For Ukraine

Western governments froze roughly $300 billion in Russian sovereign and private assets after Russia’s 2022 invasion, with about $200 billion of those securities held at Belgium’s Euroclear depository. European leaders are advancing plans to tap that pool to keep Ukraine solvent, with proposals ranging from European Commission President Ursula von der Leyen’s €140 billion “reparations loan” to schemes valuing frozen assets at roughly $217–225 billion that could let Kyiv borrow up to about $163 billion using the holdings as collateral rather than through outright confiscation. The preferred design would treat disbursements as a loan repayable if and when Russia pays war reparations and is expected to be paid out in installments (discussions foresee payments across 2026–27). Belgium and other EU governments have raised legal and financial concerns, including collective liability, potential lawsuits, and the market precedent of touching central-bank reserves, meaning unanimity and a detailed legal framework are required before implementation. Moscow has warned of retaliatory measures, and EU leaders say tapping the assets has gained urgency amid a pullback in U.S. aid under President Trump and declining European military allocations.