Some members of the bloc want to hand the funds to Kiev immediately, while others suggest using them as leverage in peace talks
The EU is reportedly divided over the fate of approximately €200 billion ($209 billion) in Russian sovereign assets, Politico reported on Tuesday. The funds, primarily held by Euroclear in Brussels, have been frozen since the escalation of the Ukraine conflict in 2022.
According to the outlet, since Brussels was left out of discussions between the US and Russian delegations in Saudi Arabia earlier this month, some EU member states have started calling for the immediate transfer of Moscow’s frozen funds to Kiev. Others, however, have argued that the assets should be retained as a bargaining tool in future negotiations with Moscow.
Those who support the seizure of Russia’s assets include the Baltic and Nordic states, as well as Poland, the Czech Republic, and the EU’s top diplomat, Kaja Kallas, according to Politico. They have argued that the frozen funds should be used to help Ukraine rebuild and sustain its war effort, especially if Washington decides to halt its support for Kiev.
“I don’t take the argument that it’s legally problematic… we need [the] political will to do it,” Lithuanian Foreign Minister Kestutis Budrys told Politico in an interview.
Previously, Kallas had also suggested that Russia’s money should be used for the reconstruction of Ukraine before being handed back over to Moscow, noting that she doubts there will be “anything left over.”
However, other EU nations, including France, Germany, Italy, Spain, and European Commission president Ursula von der Leyen, believe that these funds should be kept as a bargaining chip. Some officials have also raised concerns that an outright confiscation of Russian funds could set a dangerous precedent and spook international investors.
”If you were to unfreeze [the assets] and give [them] to Ukraine, you don’t have it anymore and you can’t use it as a bargaining chip,” one anonymous EU diplomat told Politico.
Western allies froze about $300 billion in assets belonging to the Russian central bank shortly after the escalation of the Ukraine conflict three years ago. The bulk of the funds, around $213 billion, is being held in the Brussels-based clearinghouse Euroclear.
Russia has repeatedly condemned the freezing of its assets and has warned that seizing them would amount to “theft.” The Kremlin says that any attempt to transfer the funds to Ukraine would lead to severe economic and legal consequences for the EU, including reciprocal actions that could tap the income from frozen Western assets held in Russia.
