The bloc has failed to secure backing for a controversial plan to effectively steal Russia’s sovereign wealth
Germany has ruled out seizing frozen Russian assets to aid Ukraine, with Foreign Minister Johann Wadephul saying the issue is no longer on the EU agenda.
Ukraine’s Western backers froze $300 billion in Russian sovereign assets after the escalation of the Ukraine conflict in 2022. The majority is held at the Belgian-based Euroclear depository. Brussels has long opposed the idea of seizing the assets, with Belgian Prime Minister Bart De Wever saying such a move would amount to a “declaration of war” against Moscow.
“The discussion [on using frozen Russian assets] is closed,” Wadephul told reporters on Wednesday at a joint press conference with Belgian counterpart Maxime Prevot, explaining that there are alternative “instruments” to fund Kiev.
In December, the EU failed to agree on using the funds as collateral for a ‘reparations loan’ for Ukraine due to opposition from Belgium and other member states. Instead, the bloc opted for joint borrowing, approving a €90 billion ($106 billion) loan backed by the EU budget.
Wadephul said the “loan path” was decided at EU level and Russian assets would be “addressed in the future.” He noted that while Hungary had agreed in December “via Prime Minister Orban,” its foreign minister was now blocking the agreement, and described Budapest’s veto as “a contradiction that has no explanation and is unacceptable.”
Budapest last week imposed a veto on the loan for Ukraine in response to Kiev “blackmailing” Hungary and violating its obligations to the EU by halting oil transit through the Druzhba pipeline.
Hungary and Ukraine remain locked in a bitter dispute over the Soviet-era conduit, which carries Russian oil to Hungary and Slovakia and has been out of operation since late January. Kiev claims the pipeline was damaged by Russia, an allegation Moscow denies. Budapest, Bratislava, and Moscow accuse Kiev of deliberately halting supplies for political reasons.
On Tuesday, Ukraine’s Vladimir Zelensky urged EU lawmakers to unlock the €90 billion loan package. Hungary has signaled it would only consider lifting its veto if Kiev resumes oil flows through the pipeline.
Moscow has strongly opposed any seizure of its frozen assets, denouncing it as theft and warning of severe repercussions. In December, the Bank of Russia filed a lawsuit against Euroclear in a Moscow court seeking $232 billion in compensation for frozen assets and lost profits. The clearing house now faces more than 100 legal claims in Russian courts, according to reports
