Four EU states revive push to use Russia’s frozen billions for Ukraine

The Financial Times reported that Sweden, the Netherlands, Spain, and Poland are jointly urging the European Commission to restart work on using more than €200 billion ($233 billion) in frozen Russian central bank assets to fund Ukraine. Belgium blocked the proposal in December over legal and financial concerns.

The Council says the EU’s €90 billion ($105 billion) loan covers two-thirds of Ukraine’s projected funding needs for 2026 and 2027. In the Financial Times, Swedish Foreign Minister Maria Malmer Stenergard called the loan a “manifestation of the EU’s commitment to support Ukraine,” but said it was “clearly not enough.”

A draft obtained by the Kyiv Independent is dated 27 August and asks EU foreign ministers to hold an initial discussion in Ireland on 1–2 September. Three EU diplomats told the outlet they expected it to be sent the same day.

EU rules already channel profits from frozen assets to Ukraine, primarily to help repay EU and G7 loans. The Commission proposed using cash balances from the Russian holdings for a separate reparations loan, while leaving the assets frozen.

In February, Kaja Kallas acknowledged that EU officials had done no further work on the option since December. Separately, Ukrainians and their supporters rallied across dozens of countries from 22 to 24 August to demand that Europe use the assets.

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Ukrainians rally across dozens of countries to demand Europe use Russia’s frozen billions

Belgium’s objections remain unchanged. The government fears Russian legal retaliation and wider risks to financial markets because most of the assets are held in Belgium. No new proposal has resolved those concerns, and the coalition is asking the Commission for a progress report on possible legal and technical solutions.