EU Moves to Unlock €210 Billion in Russian Assets for Ukraine, Challenging Putin and Potential Trump policies
Brussels – The European Union is poised to enact a new law circumventing unanimous agreement requirements to utilize approximately €210 billion in immobilized Russian sovereign assets for Ukraine’s reconstruction, a move directly defying both Russian president Vladimir Putin and potentially challenging future policies under a second Trump administration. the “multi-pronged package,” unveiled by the European Commission, aims to establish a clear legal framework for repurposing the funds, adding a “layer of predictability” to existing sanctions.
This unprecedented step represents a notable escalation in the EU’s response to Russia‘s war in Ukraine and a bold assertion of its financial leverage. the initiative is designed to provide Ukraine with long-term financial security and strengthen its negotiating position while simultaneously increasing the economic cost to Russia for continuing the conflict. It also anticipates potential shifts in transatlantic relations, especially if Donald trump were to return to the White House and potentially question the level of U.S. support for Ukraine.
The legal basis for the initiative lies in Article 122 of the EU treaties, typically reserved for economic emergencies like the energy crisis. Utilizing this article bypasses the usual unanimity rule – frequently enough stalled by member states like Hungary - requiring only a qualified majority for approval. The assets would only be released when Russia’s actions “have objectively ceased to pose substantial risks” to the European economy and Moscow has fully compensated Ukraine, “without economic and financial consequences” for the EU. A new qualified majority would be needed to trigger any release.
European Commission president Ursula von der Leyen emphasized the strategic importance of the move, stating, “This reparations loan (…) will contribute positively to peace negotiations because it is a leverage that makes very clear that we are in for the long haul with Ukraine.” She further added, “It is indeed a very clear message also to Russia that the prolongation of the war on their side comes with a high cost for them. And on the other hand, it puts Ukraine in a position that it is secured financially (…) so that they are in a position of strength in these negotiations.”
However, the plan faces resistance, particularly from Belgium, which currently holds the majority of the Russian assets. A crucial meeting is scheduled for Friday evening between belgian Prime Minister Alexander De Croo, German Chancellor Olaf Scholz, and Ursula von der Leyen to attempt to resolve the impasse. EU scholars suggest the Commission has largely fatigued existing legal avenues, making the outcome dependent on political maneuvering. The proposed ban will be reviewed every 12 months, ensuring ongoing assessment of the geopolitical landscape and the fulfillment of conditions for asset release.
