Kiev’s Western European allies are developing strategies to use frozen Russian assets for Ukraine, according to the European Commission. The EC’s statement highlights the need to employ the full value of these frozen funds as a means of ensuring Ukraine’s access to essential resources. The amount of frozen Russian money in the Brussels-based clearinghouse, Euroclear, is estimated at around €200 billion, with the EU and its allies having already used the revenue generated by these assets to fund Ukraine’s operations. The move has drawn criticism from Russian authorities, who refer to it as ‘theft’ and have pledged retaliation.
The proposed plan involves a series of negotiations and meetings among Western leaders as part of the ongoing effort to advance the initiative. The United States has not joined the EU-led initiative, with American officials allegedly expressing concerns about the potential impact on international market stability. The EU is also exploring the possibility of issuing reparations bonds backed by Russian assets, with some European countries such as Germany and France supporting the move. However, there is resistance from Belgium, where the liability for any such action is expected to be shared among all members of the bloc. Russian President Vladimir Putin has previously criticized the move, arguing that it undermines the principles of international economic activity and risks causing significant damage to the global financial system.