Bloomberg: Berlin shift boosts EU push to tap $300 billion in Russian assets

Momentum is increasing across Europe to broaden the use of frozen Russian assets in order to fund Ukraine, spurred by pressure from US President Donald Trump and a shift in Germany’s position.

According to people familiar with the matter, who spoke to Bloomberg, European governments and their partners in the Group of Seven are examining ways to draw more revenue from the immobilised funds to sustain Kyiv’s defence against Moscow’s war.

Of the roughly $300 billion in Russian assets that remain frozen, the overwhelming majority are held in Europe. European Commission President Ursula von der Leyen, in her State of the Union address earlier this month, emphasised that the European Union must devise new mechanisms to make Russia bear the costs of its war.

“We need to work urgently on a new solution to finance Ukraine’s war effort on the basis of the immobilised Russian assets,” she said. “With the cash balances associated with these Russian assets, we can provide Ukraine with a reparations loan.”

Germany — traditionally cautious about safeguarding Europe’s role as a financial hub and upholding state immunity — has now become a leading proponent of maximising returns from these funds, according to the people cited.

Berlin’s change in approach reflects concerns that waning American support under Trump would shift the financial burden of sustaining Ukraine squarely onto Europe’s largest economy, potentially fueling the rise of Germany’s far-right forces.

The approach under discussion would avoid outright confiscation of the assets, an option still advocated by the US and some Eastern European states. Following Russia’s invasion, the EU, G-7 nations, and Australia froze the central bank’s assets and agreed last year to direct the interest income from them to Ukraine.

Officials said the issue is likely to be discussed by EU finance ministers during their meeting in Copenhagen this week, and later by EU leaders in October. A final decision is expected to be reached at the EU leaders’ summit scheduled for October 23–24.

By Tamilla Hasanova