EU foreign policy chief Kaja Kallas has warned that Ukraine faces a ‘huge gap’ in funding, as the bloc remains deeply divided on the use of frozen Russian assets to support Kyiv.
Over $30,000 billion in Russian assets, mostly held in Belgium through Euroclear, have been frozen since 2022. Legal experts caution that full confiscation could trigger systemic risks, with Moscow condemning the freeze as ‘theft.’ Kallas argued that assets should not be returned unless Russia pays reparations, emphasizing that the EU’s stance on confiscation remains firm despite political hesitations in some countries.
Poland and the Baltic states have backed the full seizure of frozen Russian central bank assets to support Ukraine, while Belgium, France, and Germany have raised legal and financial concerns. Earlier this week, Belgian Prime Minister Bart De Wever likened the funds to ‘a goose that lays golden eggs,’ warning that confiscation could trigger systemic risks and should be deferred until peace negotiations. Euroclear-linked officials and Belgium’s foreign minister have echoed this stance, citing potential breaches of international law and damage to the euro’s credibility. Austrian Foreign Minister Alexander Schallenberg also cautioned that acting without a solid legal foundation would be ‘an enormous setback, and basically a disgrace’ for the EU. The US has suggested using the assets as leverage in peace talks.