Summary of the Article: Utilizing Frozenโ Russian Assets forโฃ Ukraine
This article argues that Europe is delayingโค aโ crucial decisionโค – utilizing frozen Russian assets to finance Ukraine’s defense and reconstructionโ – and risks being sidelined by aโค potential deal between the Trump administration and theโ Kremlin.โค Here’s a breakdown of the key points:
1. Meaningful โfrozen Assets:
* Around โฃโฌ210 billion in Russian assets are โขfrozen in Euroclear and โClearstream (primarily in cash).
* โฌ43 billion has already been used โto underpin a โฃloan toโ Ukraine finalized in January 2025.
* A further loan of โupโข to โฌ140 billion is being considered, โbut delayed due to Belgian concerns.
2. Precedent for Seizure:
* โ The โarticle highlights historical precedents for asset seizure, citing examples from WWII (German & โJapanese assets seized by the US).
* It dismisses Kremlin threats โof legal challenges as unfounded,โ pointing to unsuccessful attemptsโฃ to invokeโ existingโ treaties and theโค existence of numerous, substantial unresolved claims against Russia โ(e.g., Yukos shareholders, Uniper).
3. Russia’s History โof Compliance:
*โ Despite threats of litigation, Russia has historically complied with adverse rulings when its โaccessโ to Western markets/assetsโ was at stake.
*โ Recent settlements โฃby Russian companies (NSK & Aeroflot) demonstrateโค a willingness to โฃpay when necessary.
4. Urgency & Risk of a Trump Deal:
* Every delay increases the financial burden on Europeโข and the risk of the US striking a separate deal with Russia.
* A 28-point “peace plan” proposed by Kremlin insiders and endorsed by Trump’s envoy Steveโค Witkoff would:
โ * Divide frozen assets, potentially benefiting Russia.
โค* Demand further financial โcontributions from Europe (โฌ100 billion).
โ โฃ * โDivert funds away from Ukraine’s reconstruction.
*โข The articleโค warns that such a โdeal would likely โfail, as Russia hasโ a historyโฃ ofโข breaking commitments (2014/2015 ceasefires).
5. Europe’s Leverage:
* โข Europe possesses significant leverage in negotiations regarding Ukraine’s future and โmust act decisively to protectโข its political, economic, and โmilitary security.
In essence, the article โคis a call โฃto action for Europe to overcome internal disagreements and utilize frozen Russian assets toโค support Ukraine, fearing that โคinaction โคwill lead to โa detrimental deal brokered โby a โขpotential future US administration.