The European Union continues to discuss mechanisms for utilizing frozen Russian assets to support Ukraine, particularly through financing the supply of weapons from the United States. Hundreds of billions of dollars that have been blocked in Russian accounts could become a primary source for a new military aid package to Kyiv. Preliminary estimates suggest that the annual need to replace American military and financial assistance to Ukraine is about 45 billion dollars.
This is reported by Finway
Possible Mechanism for Utilizing Frozen Assets
One option being considered is providing these funds in the form of loans, which Russia could only repay after compensating for all damages caused by the war. Estimates indicate that the total amount needed for Ukraine’s recovery is around 524 billion dollars. Thus, the amount of frozen Russian assets—approximately 300 billion dollars—could significantly cover the costs of rebuilding the country.
Risk Assessment for European Financial Institutions
At the same time, the CEO of the largest depository, Euroclear, Valérie Urban, emphasizes the risks that arise from investing these assets in more risky financial instruments. According to her, such actions could be equated to expropriation and pose significant threats to the depository, which currently holds 191 billion euros of Russian assets.
“In the event of a restitution request from the Central Bank of Russia regarding the missing assets, someone will cover this amount.”
The European authorities are still seeking a compromise solution that will allow for the effective use of these financial resources to support Ukraine while minimizing risks to the European financial system.