EU Considers Mobilizing £184 Billion of Frozen Russian Assets to Fund Ukraine Amidst Controversy
The European Union is exploring a plan to mobilize approximately £184 billion of frozen Russian assets held in Europe, notably in Belgium, to fund Ukraine. The proposal includes an EU loan scheme secured by these frozen assets, aiming to provide financial support to Ukraine without transferring the assets directly. However, the legality and practical impact of this loan scheme have been heavily contested.
Moscow and Washington are unlikely to recognize the legitimacy of the move, and several EU member states oppose the plan, with Belgium's position playing a pivotal role in the outcome. Additionally, concerns are raised about bond-market risk and the potential domestic cost-of-living pressures within Europe. Donald Trump has publicly opposed the scheme, advocating instead for unfreezing these assets as part of a peace deal, alongside reports of planned US-Russia talks in Miami.
Even if the loan scheme proceeds, analysts suggest it may not significantly change the course of the conflict, as Russia's economy remains resilient, supported in part by oil sales to China and India. There are also long-term risks: if the funding fails to turn the tide in Ukraine, Europe could lose the moral high ground and potentially fuel economic nationalism, which may impact other crises such as in Taiwan.
This forthcoming summit represents a moment of truth for Ukraine and the EU, with no early consensus reached. The final outcome will shape Ukraine's funding prospects, the future unity of the EU, and Europe's willingness to financially sustain the war without activating frozen Russian assets.
