EU Eyes Frozen Russian Assets to Aid Ukraine

European Union leaders deliberated in Brussels on financing Ukraine using frozen Russian assets instead of joint EU borrowing. Although the decision seems favorable, several nations, including Belgium, seek guarantees against potential legal repercussions, prompting complex discussions.

During a pivotal summit in Brussels, European Union leaders leaned towards using frozen Russian assets to finance Ukraine in 2026 and 2027 rather than resorting to joint borrowing. Polish Prime Minister Donald Tusk confirmed this development, highlighting a breakthrough consensus on the matter.

The EU has frozen 210 billion euros worth of Russian assets since Moscow's 2022 invasion of Ukraine, with 185 billion held in Belgium's Euroclear. Belgium, however, is apprehensive about possible legal retaliations from Russia if funds are released for this plan.

Despite the general agreement on the funds' use, technical discussions remain complex. Nations like Belgium, most vulnerable to Russian financial retributions, demand robust safeguards. Furthermore, Tusk indicated minimal enthusiasm for using EU budget headroom, preferring guarantees and reparations based on Russian assets.

(With inputs from agencies.)