Four EU states urge Brussels to revive work on frozen Russian assets for Ukraine
Sweden, the Netherlands, Spain and Poland plan to press the European Commission to resume work on a mechanism to use over €200 billion in frozen Russian assets to fund Ukraine, after the plan stalled last winter due to Belgian objections.
Four European Union member states — Sweden, the Netherlands, Spain and Poland — are preparing to send a letter to the European Commission urging it to restart work on a mechanism that would allow more than €200 billion in frozen Russian central bank assets to be used for financing Ukraine, the Financial Times reported, as cited by Ukrainska Pravda.
Most of these funds are held in Belgium, and it was Belgium that blocked the initiative last winter, halting its progress. According to four people familiar with the document, the coalition's letter will call on the EU executive to explain what progress has been made on alternative legal and technical mechanisms that could bypass Belgium's veto. The letter is expected to be sent on Thursday.
Swedish Foreign Minister Maria Malmer Stenergard said it was time to start a new discussion on how the frozen Russian assets can continue to be used for the benefit of Ukraine and of Europe itself. One source described the move as a call for the European Commission to carry out the technical groundwork needed to ease Kyiv's budget pressures.
€90 billion loan seen as insufficient
EU capitals are increasingly concerned that Ukraine will need financing beyond the €90 billion loan already secured through the bloc's budget, as Kyiv continues working to protect its cities from Russian missile strikes. Stenergard noted that the €90 billion loan reflects the EU's commitment to supporting Ukraine but is clearly not enough on its own.
Belgium, as it did last year, remains concerned about potential legal retaliation from Russia and warns of risks to financial markets from interfering with sovereign assets. One interlocutor noted that nothing has changed since the previous discussion and its failure.
The renewed push on frozen assets comes as debates intensify over the size and funding of the EU's next seven-year joint budget. During a visit to Kyiv on 18 August, Belgian Foreign Minister Maxime Prévot said Belgium needs guarantees it will not be left alone to cover costs if Russia successfully challenges the decision in court. Ukrainian Foreign Minister Andrii Sybiha, for his part, stressed that now is the time to actively return to discussions on how frozen assets could be used.
