European politicians urge EU to use frozen Russian assets to support Ukraine

By Melike Pala

BRUSSELS (AA) - Four leading politicians from Europe and Canada on Friday called on the European Union to take custody of €210 billion ($234 billion) in frozen Russian sovereign assets and use the funds to support Ukraine's needs.

In a joint op-ed published by Poland’s TVP World, Germany’s Handelsblatt, Le Monde, The Times of London, and the UK’s Globe and Mail, the politicians argued that the EU should transfer the assets to a special EU custodian before the end of this year, calling the move an urgent step to secure funding for Kyiv.

The signatories are former German Defense Minister Annegret Kramp-Karrenbauer, former French European Affairs Minister Nathalie Loiseau, former UK Chancellor of the Exchequer Rachel Reeves, and former Canadian Deputy Prime Minister Chrystia Freeland.

"The time to act is now," they wrote, warning that Ukraine faces a €70 billion funding shortfall next year as Russian aerial attacks continue and the country struggles to sustain its defense.

They said the frozen assets, immobilized following the start of the war in Ukraine, could provide a financial bridge for Kyiv through 2029 and reduce the risk of political changes in European countries disrupting support.

The proposal, which they call the "Russian Transfer," would move custody of the immobilized Russian Central Bank accounts from financial institutions, primarily Belgium-based Euroclear, to the EU itself.

- EU leaders had failed to reach agreement

The politicians stressed that the arrangement would not amount to confiscation, as Russia would retain ownership of the assets, while the associated liabilities would also be transferred.

They argued that the arrangement could address Belgium's legal concerns over the concentration of Russian assets at Euroclear, which holds approximately €185 billion of the total.

The signatories also proposed that the EU compensate member states and private companies for potential losses resulting from the transfer, arguing that such safeguards would not require additional guarantees from individual member states.

The call comes amid continuing disagreements within the EU over how to finance Ukraine's military and budgetary needs.

EU leaders previously failed to reach agreement on using approximately €210 billion in frozen Russian assets to underpin a large loan to Kyiv, largely due to Belgium's objections and its demand for guarantees against potential legal and financial retaliation from Moscow.

Instead, the bloc agreed to raise €90 billion in common debt to finance a loan to Ukraine over 18 months. However, the funding is expected to fall short of Kyiv's requirements.

Ukrainian President Volodymyr Zelenskyy has requested an additional €70 billion for next year.