EU Drafts Large-Scale Funding Plan for Ukraine Using Frozen Russian Assets
In Brussels, a comprehensive new financing mechanism is being actively developed to support Ukraine, based on the utilization of frozen Russian assets located within the European Union.
Ahead of a scheduled meeting of EU member states’ ambassadors, the European Commission has prepared a detailed document proposing to mobilize up to 140 billion euros to fund Ukraine’s needs.
The idea is to leverage these assets, currently frozen due to sanctions, as a source of financial aid to Ukraine amidst its ongoing conflict with Russia.According to the plan, Ukraine will be able to receive loans only after the conflict ends and Russia pays reparations—then the EU will cover the costs associated with managing and safeguarding the frozen assets, handled by the Belgian financial firm Euroclear.
The funding envisages phased disbursements, allowing Kyiv to use the resources for both defense collaboration and normal budgetary needs.Furthermore, the European Commission proposes amending sanction rules, shifting from unanimity to qualified majority voting to prevent blocking by countries like Hungary and to ensure the effective recovery of Russian assets.
These issues are actively discussed ahead of the EU leaders’ summit in Copenhagen scheduled for October 1.
At the summit, broader efforts to support Ukraine and utilize Russian frozen assets for regional stabilization are expected to be key topics.German Chancellor Friedrich Merz publicly backed this proposal in a Financial Times article, emphasizing that credit-based aid should be a part of military support for Ukraine, while also calling for a careful and strategic approach to using frozen assets within this framework.