EU Resumes Plan to Transfer €200 Billion of Russian Assets to Ukraine

A coalition of EU countries, including Sweden, the Netherlands, Poland, and Spain, is urging the European Commission to resume work on a mechanism for using frozen Russian assets to finance Ukraine. This concerns more than €200 billion of assets from the Central Bank of Russia that are blocked in the EU. A joint letter demanding the development of alternative mechanisms to bypass Belgium's veto will be sent on August 27. Swedish Foreign Minister Maria Malmer Stenergard emphasized the need to discuss the further use of frozen funds to protect Ukraine and Europe. The previous plan to use the assets was blocked by Belgium due to concerns over legal liability and its impact on financial markets. In December, a loan of €90 billion to Ukraine was agreed upon with guarantees from the EU budget, but this is insufficient to cover the deficit. The new call for the use of Russian assets coincides with discussions on the next seven-year EU budget. Diplomats believe that the frozen assets will help ease the burden on the budgets of countries and support Ukraine's defense.