This involves more than €200 billion in funds from the Central Bank of the Russian Federation that are frozen in EU countries. This was reported by Dengi.ua, citing the Financial Times.
The EU Is Seeking a Way to Utilize Russian Assets
A joint letter calling for alternative legal and technical mechanisms is scheduled to be sent to the European Commission on August 27. The initiative is supported, in particular, by Sweden, the Netherlands, Poland, and Spain.
EU countries want to find a way to use frozen Russian funds, despite resistance from Belgium. It is in Belgium, at the Euroclear depository, that the bulk of these assets is held.
Swedish Foreign Minister Maria Malmer Stenergard stated that it is time to restart discussions on using Russia's frozen funds. According to her, this could be a way to provide support to Ukraine while simultaneously strengthening European security.
Why the Previous Plan Stalled
The idea of directly utilizing the pool of Russian assets met with resistance from Belgium. Brussels fears potential lawsuits from Russia, financial market risks, and the need to compensate for losses in the event of unfavorable court rulings.
As an alternative, the EU had previously approved a €90 billion loan for Ukraine guaranteed by the EU budget. In addition, proceeds from frozen Russian assets are being used to service a separate €50 billion loan to Ukraine.
However, European countries believe that the available resources are insufficient to cover Ukraine’s financial needs amid the war.
Why the Issue Has Been Raised Again
The new initiative emerged amid discussions on the EU’s next seven-year budget. European diplomats believe that utilizing Russian assets would help reduce the additional burden on EU member states’ budgets and provide Ukraine with more long-term financing.
That said, discussions currently center on resuming work on the technical mechanism rather than an immediate decision to transfer the €200 billion in Russian assets to Ukraine.
