Von der Leyen proposes Solutions to Unlock Russian Funds for Ukraine Aid
European Commission President Ursula von der Leyen is pushing for a resolution to utilize frozen Russian central bank assets to financially support Ukraine, addressing concerns raised particularly by Belgium. Ukraine is facing a significant funding gap, with an estimated €135.7 billion needed by the end of 2027, according to the EU Commission.
The proposal comes as an alternative to securing funds through EU member state contributions, shared debt, or a combination of both – options which are projected to be more costly for individual nations. Von der Leyen’s plan outlines ways to mitigate the legal and financial risks associated with using the Russian assets,a key concern for Belgium.
Belgium’s hesitation stems from the fact that a ample portion of these frozen funds are currently managed by Euroclear, a Belgian company. The belgian government fears potential legal challenges and negative repercussions for European companies still operating within Russia if the assets are utilized.
To address these concerns, von der Leyen’s proposal details risk-sharing mechanisms and suggests including fixed Russian state assets held in other EU countries – estimated at €25 billion – in the potential pool of funds.
The core of the plan, championed by von der Leyen and German Chancellor friedrich Merz, involves providing Ukraine with loans up to €140 billion, backed by the frozen Russian resources. Russia would only regain access to these funds upon making reparations payments following the conclusion of the war.EU member states would only be required to provide guarantees in the unlikely event the frozen assets are unexpectedly released due to legal rulings or agreements.
The EU Commission anticipates a gradual reduction in military aid needs,projecting €51.6 billion in 2026 and €31.8 billion in 2027. Together, financial assistance for Ukraine’s domestic needs is estimated at €20.1 billion in 2026 and €32.2 billion in 2027.
A final decision on the financing strategy is expected at the upcoming European Council summit on December 18th. Von der Leyen emphasizes the urgency of clarifying Ukraine’s financial future, arguing that utilizing Russian funds will maintain pressure on Moscow, diminish its hopes for victory, and create a foundation for potential peace negotiations and a cessation of hostilities.
(Source: ntv.de, gut/dpa)
