EU splits over frozen Russian assets

(MENAFN) The European Union is reportedly split over the future of around €200 billion in Russian sovereign assets, which have been frozen since the Ukraine conflict escalated in 2022. The funds, mainly held by Euroclear in Brussels, have sparked a debate among EU member states, especially after Brussels was excluded from recent US-Russian talks in Saudi Arabia.

Some EU countries, including the Baltic and Nordic states, Poland, the Czech Republic, and top diplomat Kaja Kallas, argue that these frozen assets should be used to support Ukraine's reconstruction and ongoing war efforts. Lithuanian Foreign Minister Kestutis Budrys emphasized the need for political will to transfer the funds, dismissing legal concerns.

However, other EU members, including France, Germany, Italy, Spain, and European Commission President Ursula von der Leyen, believe the funds should be kept as leverage in future negotiations with Russia. They warn that giving the money to Ukraine could undermine the EU's ability to use it as a bargaining chip and set a risky precedent that could deter international investors.

The US and EU froze about $300 billion in Russian central bank assets, with the bulk held in Euroclear. Russia has strongly condemned the move, labeling it theft, and warned that transferring the funds to Ukraine could lead to severe economic and legal repercussions for the EU.

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