EU Seeks New Way to Tap €210bn in Russian Assets

The European Commission is once again looking for a way to use approximately €210bn ($246bn) in frozen Russian central bank assets to support Ukraine, according to the Financial Times.

A previous attempt ran into resistance from Belgium, which demanded sufficient guarantees against the legal and financial consequences of potential Russian retaliation. The issue has resurfaced as Kyiv’s defense costs rise.

Ukraine says it faces a $27bn funding shortfall this year and expects an even larger deficit next year. One option under discussion would transfer the Russian assets held by Euroclear and other European financial institutions to a separate EU mechanism.

The corresponding liabilities would be transferred with them, protecting Belgium and Euroclear from legal risks. However, an agreement remains some way off.

The Belgian government maintains that its position has not changed and that any solution will require the political support of all 27 EU member states.

(mja)