EuropeS โคEffort to Fund Ukraine with Frozenโ Russian Assets Stalls
BRUSSELS – A European Union initiative to leverage approximately โฌ210 billion in frozen Russian assets to aid Ukraine is facing significant obstacles, jeopardizing a key funding source for Kyiv as โขit continues to defend against Russian aggression. Despite months of discussion, member states remainโฃ deeply โขdivided over the legal and financial implications of seizing the assets, hindering progress on a concrete plan.
The proposal, initially championed by European โคcommission President Ursula von der Leyen, aimed to utilize the profits generated from the immobilized funds – held primarily inโ Euroclear – to provide financial assistance โฃto Ukraine. While there is broadโ political support for helping Ukraine, disagreements over the legality of confiscating assets, potential retaliation from Russia, โคand โขthe impact on the โคEU’sโ financial reputation have created a deadlock. The plan’s โfuture is now uncertain, potentially forcing Ukraine to rely more heavily on โคcontinued aid from the United States and other international partners.
The core of the dispute centers on whether the EU has the legal authority to directly confiscate sovereign assets, even those belonging to a state accused of international crimes. Some member states,including germany and France,have expressed reservations,citing concerns about violating international law and potentially setting a hazardous precedent. Others, like the Baltic states and โขPoland, strongly advocate for utilizing the assets, arguing that Russia must be held accountable for the damage it has inflicted on Ukraine.
Currently,the EU โคis exploring options โto use the profits derived fromโ the frozen assets,estimated at โฌ15-20 billion annually,rather than the principal.However, even this approach requires unanimous agreement from all 27 member states, a hurdle โขthat has provenโค difficult to overcome.โ Negotiations are ongoing, with officials hoping to reach a compromise before the end of the year, but the path forward remains fraught withโข challenges.
