What's happened
The EU is considering unlocking nearly €90 billion of frozen Russian assets, mostly held in Belgium, to fund Ukraine's military and reconstruction efforts. The move faces opposition from some member states and concerns over legal risks and Russian retaliation. The decision is crucial for Ukraine's financial stability and Europe's unity in supporting Kyiv.
What's behind the headline?
Strategic Leverage and Political Dynamics
The push to unlock Russian assets reveals Europe's urgent need to support Ukraine without overdependence on the US. Germany's backing indicates a shift towards a more autonomous European policy, but opposition from Belgium highlights the delicate diplomatic balance. The US's interest in redirecting assets for its own reconstruction plans complicates the issue, exposing underlying tensions between transatlantic allies.
Legal and Reputational Risks
Many EU countries fear legal repercussions from Russia, which could retaliate with sanctions or legal action against European assets. Belgium's resistance stems from concerns over exposing its financial institutions to future Russian legal claims. The EU's attempt to pass an emergency bill aims to secure indefinite sanctions against Russia, but unanimity remains elusive.
Implications for Peace and Stability
Unlocking the assets could provide Ukraine with vital funds, potentially accelerating peace negotiations by demonstrating European resolve. However, failure to reach consensus risks weakening the EU's credibility and emboldening Russia, which President Putin has signaled he will expand territorial gains if peace talks stall. The outcome of this debate will significantly influence Europe's role in the ongoing conflict.
What the papers say
Sky News reports that the EU is racing to find solutions to Belgium's concerns, including passing an emergency bill to secure indefinite sanctions against Russia. France 24 highlights the plan to use €90 billion for a loan to Ukraine, with repayment from future Russian reparations, and notes opposition from seven EU countries, including Belgium, due to fears of Russian retaliation. Reuters emphasizes Zelenskiy's call for EU support and the political tension, with some leaders wary of legal risks and long-term damage. The articles collectively reveal a complex debate balancing support for Ukraine, legal risks, and diplomatic unity, with significant implications for Europe's future role in the conflict.
How we got here
Since Russia's invasion of Ukraine in 2022, the EU has frozen approximately €200 billion of Russian central bank assets. The assets, mainly held in Belgium's Euroclear, are seen as a potential resource to support Ukraine amid fears of Kyiv's bankruptcy in early 2026. The debate over their use has intensified as Ukraine's need for aid grows and European leaders seek ways to bolster Kyiv without over-reliance on US support.
Go deeper
Common question
-
Why Is the EU Considering Unlocking Russian Assets for Ukraine?
The EU is debating whether to unlock nearly €90 billion of frozen Russian assets to fund Ukraine's recovery and military efforts. This move could significantly impact Ukraine's future and Europe's stance on Russia, but it also raises legal, political, and diplomatic questions. Below, we explore the key reasons behind this debate and what it could mean for everyone involved.
-
What Are the Ongoing Impacts of Recent Floods and Political Crises on Daily Life?
Recent events like severe flooding in Washington State and political upheavals in cities like New York and across Europe are shaping everyday life in ways many people are just starting to understand. From community rebuilding efforts to economic shifts and safety measures, these crises have far-reaching effects. Below, we explore key questions about how these events are influencing our daily routines, safety, and future outlooks.
More on these topics
-
The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
-
Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.