The bloc is unlikely to decide on the use of $300 billion in the near future, the foreign policy chief has said
There is disagreement among EU members on seizing frozen Russian assets, the bloc’s foreign policy chief, Kaja Kallas, said on Monday. The move requires unanimous support from all EU member states, which is currently lacking, the diplomat admitted.
Kallas, who became the EU’s high representative for foreign affairs and security policy in December, previously called for $300 billion in frozen Russian funds to be tapped for the reconstruction of Ukraine.
Speaking in Brussels on Monday, however, she stated that “we need to have everybody’s support for this and so far, we do not have the support for this.” Kallas added that she was “not that optimistic that we will reach an agreement in March,” although she also claimed that “one more country that used to be against moving on with this and came on board.”
A noted hawk on Moscow, Kallas demanded that “all business with Russia must stop” while she was Estonian prime minister. She faced resignation calls in 2023 over revelations that her husband held a 25% stake in a logistics company that provides services in Russia.
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.
While proceeds generated by the frozen funds are already being used to back a $50 billion loan for Ukraine provided by the G7, most Western nations have stopped short of directly seizing the assets. Opponents of the move, including Belgium, Germany, and France, have raised concerns that it would set a legal precedent and undermine trust in the Western banking system.
Russia has said any moves to seize its sovereign assets would be “theft” and has vowed to legally challenge any attempts to channel the funds to Ukraine. The Kremlin has also warned that it could mirror the West’s actions by tapping income from frozen Western assets held in Russia.
Russian President Vladimir Putin said in June that by seizing Russian funds the West “will take another step towards wrecking the system created by them to ensure prosperity for decades.” Putin claimed that this system has allowed Western states “to consume more than they earn by attracting money from around the world through debts and obligations.”
