Russia Challenges Europe's Plan to Loan Frozen Assets to Ukraine

Sat Dec 13 2025 01:12:14 GMT+0200 (Eastern European Standard Time)

The European Union aims to utilize frozen Russian assets to aid Ukraine amid funding challenges, but Russia warns this could be perceived as theft.

Amidst ongoing military and economic challenges, Ukraine seeks financial support from the European Union, proposing to use frozen Russian assets worth €210 billion to cover their budget needs. While EU leaders prepare to endorse this plan, Russian officials have threatened legal action, deeming the move an act of theft. Belgium, home to a significant portion of these assets, expresses concerns over potential legal repercussions, pushing for robust guarantees to mitigate risks.

Ukraine is running out of cash to keep its military and its economy going, after almost four years of Russia's full-scale war.

For Europe, the solution to plugging Kyiv's budget hole of €135.7bn (£119bn; $159bn) for the next two years lies in frozen Russian assets sitting in Belgian bank Euroclear and EU leaders hope to sign that off at their Brussels summit next week.

Russian officials warn the EU plan would be an act of theft and Russia's central bank announced on Friday it was suing Euroclear in a Moscow court even before a final decision is made.

In total, Russia has about €210bn of its assets frozen in the EU, and €185bn of that is held by Euroclear. The EU and Ukraine argue that money should be used to rebuild what Russia has destroyed: Brussels calls it a reparations loan and has come up with a plan to prop up Ukraine's economy to the tune of €90bn.

While the EU might be able to secure sufficient guarantees for the loan itself, Belgium fears an added risk of being exposed to extra damages or penalties.

There is no time to lose, warn seven EU member states including those closest to Russia. They believe the frozen assets plan is the most financially feasible and politically realistic solution amid ongoing tensions and funding shortages.