Bloomberg: EU plans to tap $232 billion in frozen Russian assets to fund Ukraine

The European Union is increasingly looking to tap around €200 billion ($232 billion) in frozen Russian central bank assets as a key source of financing for Ukraine, with other funding avenues dwindling.

EU leaders are expected to reach a political agreement on the plan at a summit in Brussels next week, after which the European Commission would draft a legal mechanism to release the funds by mid-2026, sources told Bloomberg.

The move comes as much of the burden for supporting Ukraine’s military and economic needs now falls on Europe, with the US indicating it will no longer fully fund weapons deliveries to Kyiv.

President Volodymyr Zelenskyy has highlighted delays from some allies in financing a special procurement program aimed at buying US weapons, with Ukraine targeting $1 billion per month. So far, six countries have contributed around $2 billion toward defence support. Kyiv continues to call for enhanced air defences and long-range strike capabilities.

Under EU plans, about €140 billion ($163 billion) would be provided as loans, repayable only if Russia compensates Ukraine for war damages. The assets would remain frozen, with EU members debating legal guarantees through Euroclear to handle any potential Russian claims. Belgium has raised legal concerns, and member states are also discussing loan conditions, including whether the funds should support military needs, economic recovery, or both.

Kyiv could require over $200 billion to meet defence and financial needs through the decade if the war continues. The EU intends to coordinate asset use with G-7 allies, where roughly $300 billion in Russian assets is frozen, with Britain indicating support for such a move. G-7 finance ministers will discuss this week, alongside new sanctions targeting Russian energy revenues.

Separately, the EU aims to finalise its own sanctions package at next week’s summit, including a 2027 ban on Russian liquefied natural gas and measures against entities in third countries aiding Moscow’s energy trade, though Slovakia and Austria have so far stalled the plan.

By Tamilla Hasanova