Frozen Russian Assets Set to Fund New European Loan for Ukraine

The European Union is moving toward using Russian assets frozen within its jurisdiction to help finance Ukraine, marking a significant shift in how geopolitical crises are funded.

European officials say tapping Russian assets is increasingly seen as inevitable, while stressing the need to avoid legally reckless steps that could undermine financial stability.

The European Commission has proposed relying on Russian assets as the basis for an international loan, aiming to secure urgent funding for Ukraine amid the ongoing conflict.

Belgium plays a central role in the debate, as most of the assets are held at the Euroclear securities depository, with legal concerns delaying a final decision expected later this month.