EU's Strategic Plan: Utilizing Frozen Russian Assets to Aid Ukraine

The European Union is strategizing on using frozen Russian sovereign assets worth €140 billion to support Ukraine amid its conflict with Russia. EU officials aim to finalize a legal proposal to loan the assets to Ukraine, addressing Belgium's concerns about potential legal and financial risks.

The European Union is actively working to finalize a scheme to utilize frozen Russian assets, valued at €140 billion, in support of Ukraine. This follows discussions spurred by a U.S.-backed peace plan unveiled last week. However, securing backing from all member states like Belgium remains a hurdle.

The EU's ambition to create a loan scheme for Ukraine using these assets has been brewing since last month. EU leaders are poised to present a draft legal proposal this week, targeting the use of frozen assets to meet Ukraine's financial needs by 2026-2027. A primary concern for Belgium, where a significant portion of the assets is held, is ensuring reliable legal and financial safeguards.

With mounting urgency, the European Commission seeks to address these issues to pave the way for unanimous support. The goal is to ensure Ukraine receives the necessary aid, bolstered by guarantees from member states, whilst circumventing potential legal challenges, including those that may arise from Russia.

(With inputs from agencies.)