EU Delays Decision on Utilizing Russian Assets for Ukraine aid, Sparking Concerns
BRUSSELS – European Union leaders failed to reach a consensus on utilizing frozen Russian central bank funds to aid Ukraine during a summit friday, opting instead to task the EU Commission with developing proposals for future options. The move falls short of expectations for a firm decision and raises concerns about continued financial support for Ukraine as it defends against Russian aggression.
The debate centers on approximately €190 billion in Russian assets frozen within the EU, including funds held in blocked accounts following the withdrawal of foreign companies from Russia after the invasion of Ukraine.These companies, forced to sell factories and operations, have limited access to the proceeds now held by Russia.
The German-Russian Foreign Chamber of Commerce warned the potential consequences for German firms, estimating over €100 billion in German investments – spanning energy, pharmaceutical, and household appliance sectors - are at risk, notably those now under Russian “external management,” including subsidiaries of Uniper and Wintershall. “Germany has invested in Russia like no other country,” stated Matthias Schepp, chairman of the German-Russian chamber of Commerce Abroad. “Therefore, in the planned use of Russian central bank funds for arms purchases, it has the most to lose.”
While a clear decision was anticipated, with CDU leader Friedrich Merz predicting a “concrete decision” three weeks prior, the current outcome represents only a preliminary step.The EU Commission will now explore alternative funding mechanisms for Ukraine beyond 2025, with a potential decision deferred to the December EU summit. Belgium has also requested the Commission to develop options for covering Ukraine’s financial needs through 2026 and 2027.
