EU prepares new mechanisms for utilizing frozen Russian assets to support Ukraine
The European Union is on the verge of implementing significant new measures concerning the frozen assets of Russia, aiming to aid Ukraine in its resistance against Russian aggression.
According to EU Ambassador to Ukraine, Kateryna Maternova, concrete legislative and political decisions are expected to be adopted later this week that will define the further use of these assets to bolster Ukraine’s defense capabilities.
She emphasized that the EU is already redirecting profits from these assets to purchase weapons for Ukraine, and work on additional mechanisms continues.
Since the start of Russia’s full-scale invasion, EU and G7 countries have frozen Russian assets, predominantly held in Europe — with approximately 1.5 billion euros already allocated to support Ukraine’s military sector under the so-called Danish model.
Furthermore, discussions are underway regarding new financial formats, such as reparations-backed loans, which will allow Ukraine to access necessary funding without outright confiscation of assets.
These mechanisms propose using the frozen assets as collateral to secure loans that will aid Ukraine’s economy and security, with repayments to be made solely through Russian reparations.
If Russia fails to pay, the assets will not need to be recovered.
Kateryna Maternova stated that initial decisions could be made as early as this week, with legislative initiatives planned by the end of the month.
This approach opens up new opportunities for Ukraine to receive immediate financial support, leaving repayment obligations for the future, thereby strengthening Ukraine’s defense capabilities and reducing Russia’s influence through EU-driven financial mechanisms.