EU considers using frozen Russian assets to support Ukraine’s economy

The European Union is exploring ways to use around €210 billion in frozen Russian assets to provide financial support to Ukraine, helping Kyiv avoid a liquidity crisis and strengthen the country’s economic stability amid pressure from the U.S. peace plan.

Experts warn that Ukraine faces a cash shortfall of €136 billion over the next two years, threatening the funding of government operations, including salaries, social programs, and military expenditures. Without urgent intervention, Kyiv might be forced to accept highly unfavorable peace terms proposed by the U.S., including territorial concessions and a reduction in armed forces.

The EU is considering the creation of a special purpose vehicle (SPV) to channel the frozen assets. This structure would remove Belgium from legal responsibility—where the funds are held through Euroclear—and make it harder for Russia to reclaim the money. The loan to Ukraine would be structured as a “reparations loan,” keeping the arrangement legally sound while preserving Russia’s ownership rights.

Economically, this plan could have a major impact: access to liquidity would allow Ukraine to sustain key sectors such as energy, industry, and agriculture, and continue importing essential goods. Successful implementation would also boost investor confidence, demonstrating that Ukraine can manage large financial flows effectively even in conflict conditions.

EU leaders aim to act swiftly—before the next European summit on December 18—to show the U.S. that Europe is actively protecting strategic interests and supporting Ukraine’s economic resilience, strengthening its position on the global financial stage.