Europe Considers Utilizing Frozen Russian Assets
Follow-up: European Union foreign policy chief, Kaia Kalas, announced that the bloc needs to explore all “possible avenues” to maximize the benefits from frozen Russian assets in Europe to bolster support for Ukraine.
Kalas made her remarks after a meeting of EU foreign ministers in Copenhagen on Saturday, stating that “it is essential to explore all possible avenues while mitigating potential risks.”
Russian state assets were frozen in EU countries following its invasion of Ukraine in February 2022, with the majority of these assets—estimated at around €210 billion ($245 billion)—located in Belgium.
Initially, the 27 member states decided to use the revenues from these assets, amounting to several billion euros annually, to arm Ukraine.
After months of discussions, G7 leaders agreed in October 2024 to use the returns from the Russian assets to secure a €45 billion loan for Ukraine, in relation to the EU.
However, many EU member states now believe further action is necessary, with some advocating for the use of capital rather than just the interest.
Conversely, other nations, such as France, Germany, and the Netherlands, have expressed reservations, citing that confiscating these assets would face legal obstacles and could destabilize the euro by deterring future foreign investors.
EU countries are considering several proposed solutions, including Lithuania’s suggestion to treat the seized Russian assets as a loan to Ukraine to finance war damage compensation, which Russia would need to pay upon the war’s conclusion.
Kalas told reporters, “Everyone agrees on one point: Given the destruction that Russia has inflicted and continues to inflict on Ukraine, it is unreasonable for them to be able to recover this money unless Ukraine is fully compensated.”
Another idea is to pursue riskier investments for potentially greater returns.
However, Belgium, which has voiced concerns particularly over the financial risks, opposed any changes on Saturday.
Belgian Foreign Minister Maxime Previtera, after firmly rejecting any asset confiscation, clarified in Copenhagen that “changing the investment strategy is not an option as it may increase legal and financial risks.”
In response, Kalas stated, “Let’s work on mitigating these risks.”
