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EU wants quicker action on frozen Russian assets to finance Ukraine
LONDON — EU heads of state will call for quicker action on the use of immobilized Russian assets at a meeting next week amid growing pressure from U.S. President Donald Trump, according to a document seen by CNBC.
The European Commission, the executive arm of the EU, has been looking at how to use about 175 billion euros ($204 billion) in cash that has matured from frozen Russian assets held in Europe to further support Ukraine’s coffers. The Trump administration has pushed its G-7 counterparts, which include Italy, France, and Germany, to seize billions in frozen Russian assets, according to the Financial Times.
So far, European countries have used the profits generated by such assets to financially aid Kyiv, but some countries have been concerned about further measures due to potential financial and legal issues.
“The European Council is committed to finding ways to help address Ukraine’s pressing needs for 2026-2027, including for its military and defense efforts. It therefore calls on the commission to present as soon as possible concrete proposals involving the possible use of the cash balances associated with the immobilized Russian assets,” a draft document seen by CNBC stated.
The document forms the basis for conversations among the 27 EU heads of state due to gather in Brussels Thursday.
Belgium has been particularly tough on the subject, given that it hosts Euroclear – the financial institution that has the bulk of Russia’s state assets which have been frozen in Europe since Moscow’s full-scale invasion of Ukraine in 2022. Belgium’s leadership is concerned about the legal implications once the war is over and wants EU countries to commit to burden-sharing the responsibilities.
“In this context, the European Council stresses the importance of ensuring fair burden-sharing and coordination of efforts with G7 partners,” the document seen by CNBC, and which is the basis for an agreement next week, states.
Valerie Urbain, CEO of Euroclear, told CNBC earlier this month that her job is also to draw leaders’ attention to the implications of their decisions.
“We have been extremely vocal in making sure that we respect the rule of law,” Urbain said, adding it is a question of ensuring investors do not lose confidence in investing in Europe.
“One thing which is extremely important is that we continue to be attractive for international investors, and especially when you see the gigantic financing needs of Europe in order to support, European sovereignty, in order to support transition to the greener economy, digital innovation, we really need to remain very attractive to external investors,” she said.
Next week’s meeting comes at a time of increased pressure on European governments to support Ukraine after Trump dialled back on the U.S.’ financial and military support to Kyiv. Data from the Kiel Institute, showed that between July and August, Ukraine received about 7.5 billion euros in financial and humanitarian support. Of the newly allocated funds, 86% came from EU institutions.
The U.K., France and Germany came together last week calling for more action to support Ukraine. “We are ready to progress towards using, in a coordinated way, the value of the immobilised Russian sovereign assets to support Ukraine’s armed forces and thus bring Russia to the negotiation table,” they said in a statement.
