Russian assets are not the focus as Brussels weighs Ukraine funding
Usagevpn.com – Russian assets are not the focus for the European Commission at present, even as EU governments and lawmakers renew calls to use immobilised Russian central-bank funds to support Ukraine. Brussels says it is concentrating first on agreed assistance and on establishing the scale of Ukraine’s remaining financial needs.
The debate has gained urgency as Ukraine faces continuing military and budgetary pressure during Russia’s invasion. Supporters argue that using the estimated €210 billion in frozen assets could ease the long-term cost of assistance for European taxpayers.
“That’s not the primary focus,”
Commission chief spokesperson Paula Pinho said on Friday, noting that substantial work had already been done on the issue. She said the executive is currently focused on other urgent financing questions.
EU governments seek new legal options
Sweden, the Netherlands, Poland and Spain, with backing from the Baltic states, have asked the Commission to examine new legal routes for accessing the frozen funds. Most of the assets are held by Euroclear, the Brussels-based securities depository.
Ukraine supports the effort and has suggested an EU-owned custodian to hold assets now kept at Euroclear. Advocates believe such an arrangement could address concerns raised by Belgium over legal, financial and institutional risks.
The issue has also reached the European Parliament. A group of 122 MEPs from several political groups wrote to the Commission this week, urging it to restart discussions and advance the custodian proposal.
Ukraine’s funding needs take priority
For now, Russian assets are not the focus because the Commission is working on the release of a €90 billion loan for Ukraine’s financial and military support. It is also assessing Ukraine’s wider budget gap alongside the Ukrainian government and the International Monetary Fund.
The assessment became more pressing after President Volodymyr Zelenskyy asked partners last month to cover a $27 billion, or €23 billion, shortfall at Ukraine’s Ministry of Defence. Ukraine has also identified €32.6 billion in unfunded budget needs for next year.
EU and IMF officials are examining how those gaps developed and which spending requirements they represent. The figures highlight the challenge of maintaining support for Ukraine without contributions from the United States.
Pinho said the Commission needs a clearer picture of Ukraine’s additional requirements before choosing the most appropriate financing tools.
“We never said that it was out of the table. It remains there as a tool,”
she said, referring to discussions concluded at a key European Council meeting in December.
Belgian concerns remain unresolved
Russian assets are not the focus now, but the Commission has not ruled out revisiting the issue. Any proposal would need to form part of a broader Ukraine financing strategy and win support from EU member states.
A previous Commission initiative to use the underlying assets encountered strong resistance at the December summit. Belgium and Euroclear raised serious concerns over property rights, sovereign immunity, financial stability and possible Russian retaliation.
Euroclear’s role is central because it holds most of the immobilised funds and faces a legal challenge from the Russian central bank. The dispute concerns the underlying holdings, rather than only the profits generated while they remain frozen.
FAQ: Russian assets and EU support for Ukraine
Why are Russian assets frozen in the EU?
The assets were immobilised under EU sanctions following Russia’s invasion of Ukraine. They largely consist of Russian central-bank holdings held through European financial infrastructure.
Can the EU use the frozen assets for Ukraine?
The EU continues to consider legal options, but using the assets themselves raises significant legal and financial questions. The Commission has not excluded the option, although it is currently prioritising Ukraine’s immediate funding needs.
Where are most of the assets held?
Most of the funds are held at Euroclear in Brussels, making Belgium and the securities depository important participants in any future decision.
