EU wants quicker action on frozen Russian assets to finance Ukraine
LONDON — EU heads of state will call for faster action on the use of dormant Russian assets when they meet next week amid mounting pressure from U.S. President Donald Trump, according to a document seen by CNBC.
The European Commission, the EU’s executive arm, is exploring how to use about 175 billion euros ($204 billion) maturing from frozen Russian assets held in Europe to further bolster Ukraine’s coffers. According to the Financial Times, the Trump administration has forced its G-7 counterparts, including Italy, France and Germany, to seize billions of dollars of frozen Russian assets.
So far, European countries have used profits from such assets to provide financial aid to Kiev, but some countries are concerned about further action due to potential financial and legal problems.
“The European Council is committed to finding ways to help meet Ukraine’s urgent needs for 2026-2027, including military and defense efforts. It therefore calls on the commission to present concrete proposals as soon as possible, including the possible use of cash balances associated with immobilized Russian assets,” a draft document seen by CNBC said. The statement was included.
The document forms the basis of talks between the 27 EU heads of state, who will meet in Brussels on Thursday.
Belgium has been particularly harsh on the issue, given that it is home to financial institution Euroclear, which owns the bulk of Russia’s state assets that have been frozen in Europe since Moscow’s full-scale invasion of Ukraine in 2022. The Belgian leadership is concerned about the legal consequences once the war is over and wants EU countries to commit to sharing responsibilities.
“In this context, the European Council emphasizes the importance of ensuring fair burden sharing and coordination of efforts with G7 partners,” said the document, seen by CNBC, which will form the basis of an agreement to be signed next week. The statement is included.
Euroclear CEO Valerie Urbain told CNBC earlier this month that her job is also to draw leaders’ attention to the consequences of their decisions.
“We have been extremely vocal to make sure we respect the rule of law,” Urbain said, adding that it was a matter of ensuring investors did not lose confidence in investing in Europe.
“What is extremely important is that we remain attractive to international investors, and especially when you see the huge financing needs of Europe, to support European sovereignty, the transition to a greener economy, digital innovation, we need to remain very attractive indeed to external investors,” he said.
The meeting next week comes as pressure grows on European governments to support Ukraine after Trump turned down US financial and military support for Kiev. Data Kiel InstituteIt showed that between July and August, Ukraine received approximately 7.5 billion euros in financial and humanitarian support. 86% of the newly allocated funds came from EU institutions.
Britain, France and Germany came together last week to call for further action to support Ukraine. “We are ready to move towards using the value of immobilized Russian sovereign assets in a coordinated manner to support the Ukrainian armed forces and thereby bring Russia to the negotiating table,” they said in the statement.
