European Union leaders are moving to accelerate the use of frozen Russian assets to bolster Ukraine’s finances, moving beyond the limited system of using only interest and profits, ahead of a meeting of the 27 EU heads of state in Brussels next week, according to a draft EU Council document seen by CNBC.
Frozen Russian assets consist of billions of euros in cash and investments seized across Europe since Moscow’s 2022 invasion of Ukraine. Unlocking these funds could provide Kyiv with direct financial and military support, helping sustain its defense and reconstruction efforts.
Ukraine now spends roughly $172 million daily on the war, while billions in frozen Russian Central Bank reserves sit largely untouched across Europe. So far, the EU has provided €62.5 billion in budget support since February 2022, but the World Bank estimates reconstruction alone will cost $486 billion.
About €175 billion ($204 billion) in cash has matured from frozen Russian assets since Moscow’s full-scale invasion.
The European Council is now urging the Commission to present concrete proposals for unlocking these funds to address Ukraine’s urgent defense and humanitarian needs.
Belgium, which hosts the bulk of the frozen assets, has emphasized fair burden-sharing among EU members and coordination with international partners.
Until now, only profits from these funds have been used to support Kyiv. France, Germany, and the UK are now considering seizing the frozen Central Bank assets to directly fund Ukraine’s military if Russia violates a ceasefire, marking a significant policy shift.
Germany has proposed providing Ukraine with up to €140 billion from these frozen assets as an interest-free loan, repayable only once Russia compensates for war damages.
Legal and political hurdles have long limited the use of these funds, but growing pressure from Ukraine, Poland, and the Baltic states has prompted the EU to reconsider.
The bloc’s next meeting will likely determine how quickly these frozen funds can be converted into tangible support for Ukraine, signaling continued European solidarity amid ongoing war.
