Ukraine is seeing renewed momentum among European allies to seriously discuss using frozen Russian assets to help fund its war effort, a senior Ukrainian government official told Reuters. The official spoke after an informal meeting of European Union foreign ministers that Kyiv took part in.
Ukrainian politicians at the meeting urged allies to act quickly and creatively to address the country's severe budget shortfall.
Frozen Assets and New Proposals
Around 210 billion euros in Russian central bank assets have been frozen in the EU since the start of the war. The Netherlands, Poland, Spain and Sweden have proposed reviving discussions on how those funds could be used, an idea some allies have long resisted over legal concerns, according to the report.
Ukraine now sees a growing readiness among its European partners to hold serious talks and finally reach a decision, the official said. Some allies reportedly want to keep the assets as leverage for future negotiations with Russia, but Kyiv considers this unnecessary and wants access to the funds now.
Marchenko on Legal Jurisdiction
Ukraine's finance minister, Serhiy Marchenko, said the government is negotiating with its partners over changing the legal jurisdiction covering part of the frozen Russian assets.
Most of the funds are held at Euroclear, a securities depository based in Brussels. Belgium has resisted proposals to use the money, citing potential legal risks if Russia retaliates or pursues litigation. Marchenko said Ukraine wants to discuss the matter, explaining that the plan under discussion would shift responsibility for any legal disputes with Russia away from Belgium alone and onto all 27 EU member states.
Ukraine's Budget Gap
Ukraine's budget deficit this year exceeds 32 billion dollars, which the government plans to cover with funding from the EU and other partners. Marchenko said a similar sum will be needed in 2027, adding that the government is currently negotiating with the International Monetary Fund, its key creditor, over budget plans for next year.
