EU prepares to utilize frozen Russian assets to fund Ukraine: a strategic diplomatic maneuver
According to recent plans discussed within the European Commission, Brussels is actively considering the idea of using frozen Russian assets to finance critical projects in Ukraine.
This initiative has become particularly urgent amid ongoing debates about alternative sources of funding for reparations owed to Kyiv.
Diplomatic sources reveal that if many EU member states oppose this mechanism, financial responsibility could fall on taxpayers’ shoulders, as Ukraine urgently needs aid before the end of March.
Belgium, in particular, is pushing for increased commitments under loan schemes, raising concerns among fiscally cautious members that have traditionally preferred austerity.
Meanwhile, major economies like France and Italy are currently unable to assume additional debt due to high levels of national borrowing.
Behind closed doors, diplomatic negotiations are underway to persuade countries holding the majority of frozen assets — notably Belgium — to support the plan of using Russian assets to fund Ukraine’s needs.
Experts remain skeptical about the plan’s feasibility and legality, given the complex legal landscape surrounding these assets.
As EU officials strive to balance urgent support for Ukraine with legal and financial risks, the consensus is that the use of Russian assets for a €140 billion loan is almost inevitable in the near future, likely to be decided by the end of the year.
At recent summits, leaders emphasized that implementing this mechanism is a matter of time, requiring the unanimous consent of all 27 member states.
However, skepticism persists regarding the legality and risk factors involved, especially considering ongoing court disputes and innovative legal challenges.
Despite diplomatic hurdles, EU officials increasingly acknowledge that utilizing frozen Russian assets is the only viable way to address Ukraine’s funding needs.
The crucial question remains: when will this mechanism be activated? The answer appears to be imminent, expected within the coming months, marking a significant milestone for Ukraine and regional stability.