The European Commission wants to use frozen Russian assets to lend Ukraine 140 billion euros

The European Commission intends to use frozen Russian state assets in Europe to support a loan of 140 billion euros for Ukraine. This proposal has faced opposition from Belgium, which hosts the financial firm Euroclear, that holds the majority of these frozen assets, fearing legal and financial risks. The assets were frozen by the EU following Russia's large-scale invasion of Ukraine in February 2022. If the asset plan does not materialize, Ursula von der Leyen suggested issuing common EU bonds, which would later be repaid by national capitals.

Another option would be for each country to finance Ukraine from their national budgets, but these alternatives are unpleasant for heavily indebted countries like France and Italy. Von der Leyen emphasized that using frozen Russian assets is the most effective way to support Ukraine's defense and economy, in the context where EU finance ministers are preparing to discuss this issue in Brussels. It is urgent for the EU to reach a quick agreement, as Ukraine expects to remain without funds next spring.