The European Commission is considering a plan to use nearly 200 billion euros in frozen Russian assets to finance Ukraine's reconstruction. The plan envisages shifting them to riskier investments to yield higher returns, while increasing pressure on Moscow.
The proposal, which will be put on the table on Saturday at the meeting of EU foreign ministers in Copenhagen, is far from the full confiscation of assets, which is rejected by the majority of member states due to legal and economic risks.
Pressure from the Baltic and the G7
The Baltic countries and Estonian foreign policy chief Kaya Kalas are pushing for a full seizure, with the support of Economy Commissioner Valdis Dombrovskis. However, states such as Germany, Italy and Belgium are reacting, with Brussels concerned about Euroclear, which manages most of the assets.
In 2024, the G7 agreed to channel €45 billion of investment profits into Ukraine, leaving funds untouched. At the same time, the EU has to pay its own share of €18 billion by the end of 2025, which increases the pressure for new sources of funding.
Alternatives and a new fund
According to Politico, the European Commission is considering the creation of a "special vehicle" equivalent to the European Stability Mechanism (ESM). The new fund could invest the assets in higher-performing products, but also protect the EU from a possible veto by Hungary, which is seen as likely to block a future renewal of sanctions against Russia.
Ursula von der Leyen said Brussels was "advancing work on Russian frozen assets to help defend and rebuild Ukraine."
Reactions and concerns
The possibility of riskier investments is causing reactions, with the CEO of Euroclear expressing fears that EU taxpayers will bear potential losses. Today, assets are invested through the Central Bank of Belgium with a low interest rate and minimal risk.
Capital.gr
