EU Prepares 'creative' Way To Hand Over Billions Of Euros Of Frozen Rossa Assets To Ukraine
1- 13.09.2025, 15:20
- 4,974
The European Commission has come up with a new idea.
The European Commission is proposing a new idea to send billions of euros of frozen Russian assets to Ukraine, replacing the money transferred to Kiev with EU-backed promissory notes.
This is reported by Politico.
Brussels is trying to solve one of the most pressing problems since the war began - the West can confiscate interest earned on Russian assets, but not huge amounts of capital that could significantly affect Ukraine's ability to defend itself and rebuild.
The new proposal, which one official called "legally creative," could unleash a significant flow of additional funding for Kiev's war effort without technically expropriating the Russian assets themselves, which would be legally risky.
According to four officials briefed on the matter, European Commission officials proposed the idea to deputy finance ministers behind closed doors in Brussels on Thursday. The proposal was received with cautious enthusiasm, but no agreements or commitments were reached. One official said a formal proposal could come soon.
Almost 200 billion euros of Russian assets have been frozen since Moscow's full-scale invasion of Ukraine in February 2022. Most of the assets are held at Brussels-based financial institution Euroclear.
As Ukraine faces an 8 billion euro budget deficit next year, EU countries are discussing new ideas for continuing to finance the war-torn country amid tight domestic budgets.
By exchanging cash for short-term zero-coupon EU bonds, the European Commission believes it can avoid accusations of seizing money. Officials said the idea has not yet been approved, and other options for using Russian assets are also on the table.
According to the rules, any Euroclear assets to be redeemed must be transferred to a deposit account with the European Central Bank, which in turn pays interest on the funds.
The EU has so far used the interest earned to repay its share of the €45 billion G7 loan, which will soon be fully repaid to Ukraine.
Now that Ukraine is running out of money, the Commission has proposed using these cash deposits with the ECB to fund a "Reparations Loan" to help support Ukraine in the coming years.
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