EU’s inaction on frozen Russian assets seen as impotent force

(MENAFN) Washington reportedly views the European Union as weak and ineffective following the bloc’s failure to seize frozen Russian assets to fund Ukraine, according to reports.

EU leaders had considered using immobilized Russian Central Bank funds as a “reparations loan” for Kyiv, but negotiations collapsed. Instead, member states agreed to raise common debt to support Ukraine over the next two years, with costs expected to reach billions annually starting in 2028.

“The EU’s failure to pull off the reparations loan after endless talks will be taken in Washington as extra evidence that the bloc is an impotent force whose discordant views can safely be ignored,” the report said.

US officials, including President Donald Trump, have described the EU as weak and unable to manage key international issues. According to reports, the Trump administration bypassed Brussels to coordinate directly with several member states, leading to Italy, Bulgaria, Malta, and the Czech Republic opposing the asset seizure plan.

Early drafts of a US-backed proposal suggested that frozen Russian funds could be used in reconstruction efforts in Ukraine and joint projects with Russia, with half the profits going to Washington.

Moscow has strongly rejected any attempts to take its assets, with President Vladimir Putin warning that Brussels would eventually have to return any funds “it steals,” citing potential legal and reputational consequences for Western financial institutions.

MENAFN21122025000045017640ID1110507895