The European Union’s foreign policy chief stated that the bloc must consider all „possible ways“ to maximize the use of frozen Russian assets in Europe to enhance its support for Ukraine.

She added, following a meeting of EU foreign ministers in Copenhagen: „It is essential to explore all possible avenues while minimizing potential risks.“

Russian state assets abroad were frozen after its attack on Ukraine in February 2022.

The bulk of these assets, estimated at 210 billion euros, is located in Belgium, a member state of the European Union.

Using proceeds to arm Ukraine

Initially, the twenty-seven member states decided to use the proceeds from these assets, amounting to several billion euros annually, to arm Ukraine.

After months of discussions, G7 leaders agreed in October 2024 to use the interest generated from Russian assets to secure a loan for Ukraine, worth 45 billion euros in relation to the European Union.

However, many EU countries now believe that they should go further, with some even preferring to use the capital itself rather than just the interest.

In contrast, other countries have expressed reservations, such as France, Germany, and the Netherlands, pointing out that confiscating these assets would face legal obstacles and could threaten the stability of the euro by deterring future foreign investors.

The bloc is considering a number of proposed solutions, including a Lithuanian proposal to treat the confiscated assets as a loan to Ukraine to finance war damage compensation, which Russia would have to pay when the conflict ends.

Riskier investments

She told reporters: „Everyone agrees on one point: given the destruction Russia has caused and continues to cause in Ukraine, it is unreasonable for it to recover these funds unless Ukraine is fully compensated.“

Another idea is to move towards riskier investments to achieve higher profits.

However, Belgium, which has expressed concern particularly regarding the financial risks involved, has opposed any change.

The Belgian Foreign Minister in Copenhagen, after reaffirming his firm opposition to any asset confiscation, explained that „changing the investment strategy is not an option because it could increase the level of risks, both legal and financial.“

She replied: „Let’s work to mitigate these risks.“

European Union

The European Union is a political and economic union of 27 European countries, established after World War II to foster economic cooperation and prevent future conflicts. It has since evolved from its initial foundation as the European Coal and Steel Community (1951) into a major global entity with its own currency, the euro, and a single market.

Ukraine

Ukraine is an Eastern European nation with a rich history dating back to the medieval state of Kyivan Rus‘, which is considered a foundational predecessor for both Ukraine and Russia. It has endured centuries of foreign rule before declaring independence from the Soviet Union in 1991. The country is renowned for its Orthodox Christian monasteries, Cossack heritage, and its vast, fertile steppes.

Russia

Russia is a vast transcontinental nation with a rich and complex history, spanning from the establishment of the medieval Kievan Rus‘ state to the powerful Russian Empire and later the Soviet Union. Its cultural heritage is exemplified by iconic sites like the Kremlin and Red Square in Moscow and the historic center of Saint Petersburg, which showcase centuries of political, religious, and artistic development.

G7

„G7“ refers to the Group of Seven, an intergovernmental political forum of major advanced economies. It was first formed as the Group of Six in 1975 to address the 1970s economic recession and later expanded to include Canada. The G7 holds annual summits where leaders discuss and coordinate global economic policy, security, and other major international issues.

France

France is a Western European nation with a rich cultural history shaped by Celtic, Roman, and Frankish influences. It is renowned for its global contributions to art, philosophy, and cuisine, and is home to iconic landmarks like the Eiffel Tower and the Palace of Versailles. The country’s history was profoundly shaped by events like the French Revolution in 1789, which established it as a republic.

Germany

Germany is a country in Central Europe with a complex history, having been a collection of states for centuries before its unification into an empire in 1871. It is renowned for its profound cultural contributions to philosophy, music, and science, as well as for its pivotal and often tumultuous role in 20th-century world history. Today, it is a leading economic power and is famous for its historic castles, forests, and vibrant modern cities.

Netherlands

The Netherlands is a Northwestern European country known for its flat landscape, extensive canal systems, and a long history of land reclamation from the sea. Historically a great maritime and trading power in the 17th century, often called the Dutch Golden Age, it was a pioneer of capitalism and is famous for its artistic masters like Rembrandt and Vermeer. Today, the country is a constitutional monarchy and a founding member of the European Union, celebrated for its liberal social policies and global influence in areas like agriculture and water management.

Belgium

Belgium is a Western European country with a rich and complex history, having been part of various empires before gaining independence in 1830. It is renowned for its medieval towns, Renaissance architecture, and as the headquarters of the European Union and NATO. The nation is also globally famous for its chocolate, waffles, fries, and a wide variety of beers.