Europe Moves Toward Confiscating €200 Billion in Frozen Russian Assets

By Staff, Agencies

European nations are increasingly aligning around the idea of seizing over €200 billion in frozen Russian assets as part of broader discussions on securing a ceasefire in Ukraine.

The initiative, originally proposed by France and backed by major European powers, aims to use these funds as leverage to ensure Moscow’s compliance with any future peace agreement.

The assets in question are part of approximately €300 billion in Russian central bank reserves frozen since the 2022 invasion of Ukraine.

Most of these funds are held in Belgium, with smaller amounts in France, the UK, Japan, Switzerland and the US.

While they are currently generating interest to service loans for Ukraine, the principal remains untouched.

France, Germany and the UK have discussed linking the confiscation of these assets to Russia's adherence to a ceasefire, though concerns remain about the legal and financial implications.

The European Central Bank has warned that such a move could undermine confidence in the euro as a global reserve currency.

Meanwhile, Ukraine, Poland and the Baltic states have long pushed for full asset confiscation, arguing that these funds should be used directly to support Ukraine.

French President Emmanuel Macron has expressed hesitancy over immediate asset seizure, citing international legal concerns.

However, he acknowledged that the funds could play a role in post-war peace talks. Germany's stance is shifting, with future Chancellor Friedrich Merz reportedly open to discussions on confiscation.

UK Prime Minister Sir Keir Starmer has also indicated that London is exploring legal pathways to utilize the frozen assets.

Momentum for seizing the funds has grown amid the Trump administration’s threats to scale back military aid to Ukraine.

Ukrainian President Vladimir Zelensky has proposed using a portion of the assets to finance reconstruction efforts, with some proposals involving US investment in Ukraine’s mineral resources.

Meanwhile, reports suggest that Russia may be willing to allocate part of the frozen assets to Ukraine’s reconstruction, though it insists some funds should be directed toward rebuilding territories under its control.

Discussions continue over the potential establishment of a commercial fund to oversee asset distribution.