200 billion euros against war: EU wants to direct Russian assets to benefit Ukraine

The European Commission is working on creating a special fund that could tap nearly €200 billion in frozen Russian assets to support Ukraine’s post-war reconstruction.

This is reported by Politico.

According to sources, Brussels is currently analyzing the readiness of EU member states to invest these assets in riskier financial instruments capable of providing higher returns. Such a move, according to the initiators, could not only strengthen economic support for Ukraine, but also increase pressure on Russia, which refuses to stop its armed aggression.

While this is not an immediate confiscation of assets, the issue will be revisited as part of the broader discussion on possible sanctions. Most European governments are still wary of the idea of a full seizure of funds, given the legal constraints and risks to the financial system. Belgium, home to the international depository Euroclear, which holds most of Russia’s frozen assets, is particularly concerned.

Nevertheless, the European Commission, including the European Commissioner for Economic Affairs Valdis Dombrovskis and the newly appointed head of European diplomacy Kaia Kallas, are actively promoting the idea of creating a fund. One option is to introduce a mechanism similar to the European Stability Mechanism (ESM). Such a fund could potentially involve the G7 countries, including the United Kingdom and Canada, which are in favor of confiscating Russian assets.

On August 30, EU foreign ministers will gather in Copenhagen for an informal meeting, where one of the main points of discussion will be the future of frozen Russian assets and ways to use them effectively.

“When we have such amounts of resources at our disposal, it is absolutely logical to ask: why are we still not using them?”, said Kerli Veski, a representative of the Estonian Foreign Ministry, answering a question about the prospects for attracting assets for the benefit of Ukraine.

As a reminder, Belgium has announced a large-scale plan to help Ukraine: it will allocate 1 billion euros annually, provide F-16 fighters, and help rebuild the country’s infrastructure . In addition, Brussels is ready to participate in a peacekeeping mission after a ceasefire, and will use frozen Russian assets to support Ukrainian schools, hospitals, and the energy sector.

As reported, Hungary has filed a lawsuit with the Court of Justice of the European Union against the Council of the EU over its decision to use frozen Russian assets to finance aid to Ukraine.

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