Four EU states urge reconsideration of frozen Russian assets to finance Ukraine

Four EU countries — the Netherlands, Poland, Spain and Sweden — have urged the European Commission to reopen consideration of using frozen Russian state assets to help finance Ukraine. The governments sent a joint letter to the EU's High Representative for Foreign Affairs and Security Policy, Kaja Kallas, and to the Irish Minister for Foreign Affairs, Helen McEntee, ahead of an informal meeting of EU diplomats.

The letter asks the Commission to explore “new options” that would allow frozen Russian assets to underwrite support for Kyiv while ensuring that risk and potential losses are shared fairly among member states. The four governments acknowledge the legal and political complexity of the idea but say the burden should not fall disproportionately on any single country.

Background and political obstacles

Roughly €210 billion in Russian state assets are currently frozen inside the European Union, with the largest portion held at the Belgian depository Euroclear. The proposal to use some of those assets as the basis for a large loan to Ukraine has already been discussed by EU leaders, but no consensus was reached because Belgium opposed the plan.

Belgian authorities have warned of possible legal and financial consequences and flagged the risk of Russian retaliation, requesting guarantees from other member states to cover any potential losses. Instead, the EU agreed to provide a €90 billion loan to Ukraine, to be disbursed over the next 18 months on the condition that Kyiv implements agreed reforms.

The four-letter initiative signals renewed pressure inside the bloc to find additional financing mechanisms for Ukraine as the war, which began on 24 February 2022, continues to strain European political and financial resources.

Photo: press material from the event