EU plans to use €200 billion in frozen Russian assets to rebuild Ukraine after war - Politico
On Saturday, August 30, European foreign ministers will discuss the use of frozen Russian assets for the reconstruction of Ukraine.
According to Censor.NET, this was reported by Politico with reference to several officials.
Brussels is currently assessing the willingness of EU countries to channel frozen Russian assets into riskier investments that could generate higher returns for Ukraine and increase economic pressure on Russia. This move is seen as an opportunity to pave the way for the future confiscation of assets and their transfer to Kyiv as compensation for war damages.
"We are pushing forward with work on frozen Russian assets to support Ukraine's defense and reconstruction," said European Commission President Ursula von der Leyen, emphasizing the importance of the initiative.
At the same time, the project does not provide for the immediate confiscation of assets, which most EU countries oppose due to financial and legal risks. An informal meeting of 27 EU foreign ministers will take place on Saturday in Copenhagen, where "further options for using the proceeds from frozen Russian sovereign assets" will be discussed.
Some countries, notably the Baltic states, have long called for outright confiscation, while a number of Western European countries, including Germany, Italy, and Belgium, fear the legal and financial consequences. Belgium is particularly vulnerable because it is home to Euroclear, which holds most Russian assets.
As a compromise, the G7 countries agreed to allocate €45 billion of the profits from investing these assets to Ukraine in 2024, leaving the underlying assets untouched. The proposed fund for Ukraine could function similarly to the European Stability Mechanism (ESM) and be open to participation by G7 countries.
The creation of the fund will avoid the threat of unanimous vetoes by individual countries, in particular Hungary, while allowing investment in riskier instruments that can generate higher returns. Skeptics warn of possible losses and the need to cover them at the expense of EU taxpayers, so countries are agreeing on the distribution of financial and legal responsibility between states.
Countries far from Russia, such as Spain, have already expressed their support for the fund, as has Belgium, which has recently been leaning toward this model.
