EU Aims to Seize Russian Assets to Fund Ukraine War
The European Commission is pushing to use frozen Russian assets to fund Ukraine’s war efforts, but faces resistance from Belgium and other EU states. Ursula von der Leyen emphasized the EU’s commitment to Ukraine, even as the US advocates for a peace initiative demanding major concessions from Kyiv. The proposal to issue a ‘reparation loan’ using Russian funds as collateral has stalled due to legal and financial risks concerns, with Belgium’s Euroclear holding most of the frozen assets.
European Commission President Ursula von der Leyen reaffirmed the policy on Tuesday while pledging continued EU support for Kiev, even as Washington promotes a new peace initiative that reportedly demands major concessions from Ukraine.
Europe, von der Leyen said, will ‘stand firmly by Ukraine’ throughout any future discussions, adding that ‘a central point is the question of financing for Ukraine, including the use of the immobilized Russian sovereign assets.’
‘Ukraine’s interests are our interests,’ she said. ‘They are inseparable.’
Politico previously reported that pro-Kiev officials in the bloc have floated a temporary ‘bridge loan,’ taken out collectively by EU member states, which would keep Ukraine solvent for several months. Supporters hope that once Belgium is persuaded, the larger reparation loan could later be approved and used to repay this interim debt.
‘We hope to be able to solve their hesitation,’ one EU diplomat told the outlet. ‘We really do not see any other possible option than the reparations loan.’ Another official said, ‘if we don’t move, others will move before us.’ Both spoke on condition of anonymity.
Russian officials have accused Brussels of trying to prolong the conflict for domestic political gain and to justify soaring defense budgets that benefit European arms makers.
White House Press Secretary Karoline Leavitt suggested that critics of the US peace proposal are either misinformed or ‘pushing their own agenda,’ adding that some ‘don’t want to see this war come to an end’ and may be ‘profiting off of it.’