The European Commission announced on Friday that European Union governments are rallying behind the notion of utilizing funds from frozen Russian assets to support Ukraine’s financial needs. They are currently converging on potential options to make this possible, as confirmed by the Commission.
Since February 2022, the 27-nation EU has immobilized a staggering 200 billion euros from the Russian central bank and an additional 30 billion euros from private assets of Russian oligarchs in response to Moscow’s invasion of Ukraine. Commission head Ursula von der Leyen stated on Wednesday that the EU executive body would present a proposal on how to employ these assets for Ukraine’s benefit “before the summer break,” meaning before August in EU terminology.
Commission spokesman Christian Wigand declared on Friday, “Discussions with Member States on the way forward are progressing well.” He further emphasized that there is broad support among Member States and increasing alignment on the available options, instilling confidence in finding viable solutions.
EU officials acknowledge the legal complexities of using Russian assets for Ukraine but highlight the possibility of redirecting the generated interest from these assets towards Ukraine. Another option under consideration is taxing the profits obtained by the custodians overseeing the assets. However, according to the Financial Times, the European Central Bank has cautioned the Commission against hastily seizing money from the custodians, as it could undermine confidence in the euro and jeopardize financial stability.
