Some €200 billion of Moscow’s funds remain frozen by the Brussels-based clearinghouse, Euroclear
Kiev’s Western European backers are “developing measures” that would allow them use frozen Russian assets for Ukraine, the European Commission (EC) has said in a statement.
The US and its European allies blocked an estimated $300 billion of Moscow’s funds after the escalation of the Ukraine conflict in February 2022, some €200 billion ($213 billion) of which is held by the Brussels-based clearinghouse, Euroclear. They have already tapped into the revenues generated by the assets to bankroll Kiev. The Russian authorities have described those steps as “theft” and vowed retaliation.
A statement by European Commission President Ursula von der Leyen, along with the leaders of Germany, France, several other EU nations plus the UK, which was posted on EC’s website on Tuesday, insisted that “the full value” of the frozen Russian money should be employed to make sure that “Ukraine has the resources it needs.”
Western leaders are planning to hold several meetings this week to discuss “how to take this work forward,” it read.
Bloomberg reported on Monday that the US will not be joining the EU-led effort to confiscate the Russian assets. According to the agency’s sources, American officials told their Western European colleagues last week that the move could jeopardize the stability of the international markets.
In recent weeks, the EU nations have been mulling the possibility of providing a “reparations loan” of up to €140 billion ($163 billion) to Kiev, using Russian assets as collateral to back the bonds issued by the bloc.
While backed by such countries as Germany and France, the proposal faced opposition from Belgium, where Euroclear is based. Belgian Prime Minister Bart De Wever insisted that the liability for the proposed move be shared among all of the bloc’s members, not born by his country alone.
Russian President Vladimir Putin said last month that “smarter” governments oppose the seizure of Russian assets as “they understand that it would fundamentally undermine all principles of international economic activity and, without a doubt, cause enormous harm to the… international financial system.”
