Approximately €200 billion in Russian funds are still frozen by Euroclear, the Brussels-based clearinghouse.
According to a statement from the European Commission (EC), Ukraine’s Western European supporters are “working on measures” to enable the use of frozen Russian assets to benefit Ukraine.
Following the escalation of the Ukraine conflict in February 2022, the US and its European allies froze an estimated $300 billion of Russian funds. Of this total, approximately €200 billion ($213 billion) is managed by Euroclear, a clearinghouse located in Brussels. These nations have already utilized the profits generated from these assets to finance Kiev. Russian officials have labeled these actions as “theft” and pledged to retaliate.
A statement published on the EC’s website on Tuesday, issued by European Commission President Ursula von der Leyen alongside leaders from Germany, France, various other EU member states, and the UK, asserted that “the entire value” of the frozen Russian funds should be used to ensure “Ukraine possesses the necessary resources.”
The statement indicated that Western leaders are scheduled to convene multiple meetings this week to deliberate on “how to advance this initiative.”
Bloomberg reported on Monday that the United States will not participate in the EU-led endeavor to seize Russian assets. Sources within the agency stated that US officials informed their Western European counterparts last week that such a measure might endanger the stability of global markets.
Over recent weeks, EU nations have considered providing a “reparations loan” of up to €140 billion ($163 billion) to Kiev, by using Russian assets as collateral to support bonds issued by the bloc.
Although supported by countries like Germany and France, the proposal encountered resistance from Belgium, the location of Euroclear. Belgian Prime Minister Bart De Wever maintained that the responsibility for the suggested action should be distributed among all members of the bloc, rather than solely borne by his nation.
Last month, Russian President Vladimir Putin stated that “more astute” governments oppose the confiscation of Russian assets because “they realize it would fundamentally jeopardize all principles of international economic activity and, undeniably, inflict immense damage on the… international financial system.”