EU Revives Push to Unlock Frozen Russian Assets for Ukraine

The European Commission is exploring new ways to use frozen Russian reserves to back a reparations loan for Ukraine, seeking a mechanism that could overcome Belgium’s objections and win support from all 27 EU member states. The push follows calls from four EU countries and more than 120 members of the European Parliament to revive efforts to tap the roughly €200 billion ($234 billion) in Russian assets frozen in Europe.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. One proposal would move Russian assets held by Belgium’s Euroclear depository, where the vast majority of the frozen reserves are located, along with assets held at other European financial institutions, into a separate EU-controlled structure, the Financial Times reported on Sept. 11, citing two sources familiar with the discussions. The move could shift both the assets and associated liabilities under EU control, potentially shielding Belgium and Euroclear from some of the legal risks they have cited in opposing the plan. The proposal has been backed by former German Defense Minister Annegret Kramp-Karrenbauer and Nathalie Loiseau, a European Parliament member from French President Emmanuel Macron’s party. Ukrainian Finance Minister Serhiy Marchenko and 122 European lawmakers also endorsed it in a letter to EU leaders. The European Commission has yet to put forward a specific technical solution. Any plan would require political backing from all EU member states, with Belgium’s support considered particularly important. Other Topics of Interest Abramovich Loses Third Bid to Escape EU Sanctions The EU General Court rejected the former Chelsea owner’s latest attempt to overturn sanctions imposed over Russia’s war against Ukraine. “Even if we pull an impressive white rabbit out of the magician’s hat, it won’t matter without political will,” an EU official told the Financial Times. Ukraine faces €23 billion defense gap The renewed push comes as Kyiv says it faces a €23 billion ($27 billion) defense funding shortfall this year. Ukraine has shifted a significant share of its military spending from the second half of the year to the first, creating an increasingly urgent need for additional financing. Despite the funding pressure, Ukrainian long-range strikes have continued to hit Russian military and economic infrastructure. The Security Service of Ukraine (SBU) has used medium-range drones to disrupt Russian military supply routes and isolate occupied Crimea. Longer-range attacks have reportedly knocked out around a third of Russia’s oil refining capacity, hit major Wildberries and Ozon warehouses, and damaged military and research facilities. At the same time, Russia has intensified attacks on Ukrainian cities, while President Vladimir Putin continues efforts to increase pressure along the front. Ukraine also faces uncertainty over other sources of financing. An International Monetary Fund (IMF) mission left Kyiv this week without reaching an agreement needed to unlock further IMF and EU financing worth around €4.5 billion ($5.2 billion). Belgium remains key obstacle The EU approved a €90 billion ($105 billion) support package for Ukraine this year, to be provided over two years from the bloc’s common budget. But Sweden and other EU countries have recently urged the European Commission to restart work on transferring frozen Russian reserves to Ukraine. The effort was halted in December 2025 after Belgium opposed the plan over concerns about legal and financial liabilities. Sweden has argued that using the frozen Russian funds could help cover Ukraine’s financing gap without adding an extra burden to the EU budget or member states’ finances. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 97% of readers are outside of Ukraine – make it truly Ukraine’s global voice.