Bloomberg: EU push for Russian asset loan meets quiet US resistance

The US has privately urged several EU governments to block the European Union’s plan to use frozen Russian central bank assets as collateral for a major loan to Ukraine, European diplomats told reporters on condition of anonymity.

According to them, US officials argued that the assets should be preserved for securing a future peace agreement between Kyiv and Moscow rather than used in ways that could extend the conflict.

The EU this week proposed leveraging the immobilised funds to support a €90 billion ($105 billion) loan intended to cover Ukraine’s economic and military needs over the next two years. The bloc is currently holding around €210 billion of frozen Russian assets, with the possibility of using more from 2028 onward. 

These discussions come at a critical moment as Washington pressures Kyiv to consider a potentially uneven peace settlement with Russia. With President Donald Trump’s administration cutting most US assistance, Ukraine is projected to run out of funds early next year, placing greater responsibility on Europe.

US officials have also been examining whether the Russian assets could be folded into Washington’s own proposals for peace talks or used to finance future US-led reconstruction efforts. A 28-point American peace plan — revised since it first surfaced last month — still hinges on the fate of the assets, as well as issues such as Ukrainian territorial status and long-term security guarantees for Kyiv.

European leaders insist that decisions on the frozen funds fall strictly within Europe’s jurisdiction. “There is no possibility of leaving the money we mobilise to the US,” German Chancellor Friedrich Merz said on Thursday, December 4. “The American government knows this, and this is also the German government’s negotiating position. This is also the consensus at the European level. There are absolutely no differences of opinion on this. This money must flow to Ukraine — it must help Ukraine.”

Yet the EU plan faces significant internal resistance, especially from Belgium, where most of the assets are located. Merz is travelling to Brussels on December 5 to meet Belgian Prime Minister Bart De Wever and European Commission President Ursula von der Leyen in hopes of easing Belgian objections. Merz, a strong supporter of using the Russian assets, said he takes Belgium’s concerns “very seriously” and intends “not to persuade him, but rather convince him.” If approved, he said, the plan would provide aid to Ukraine “possibly for the next two to three years.”

Belgium has warned that it lacks guarantees to prevent it from bearing disproportionate legal and financial risks if Russia later seeks restitution. Brussels also fears that tapping the assets would expose the EU and its companies to Russian retaliation. Belgium has received hundreds of millions of euros in tax revenue from the frozen funds, but maintains that this money is being directed toward aiding Ukraine.

Belgium’s opposition remains the biggest obstacle to the adoption of the plan ahead of an EU leaders’ summit later this month. The EU has suggested backing the loan either through the bloc’s budget or via bilateral guarantees from member states. The assets would stay frozen, and Ukraine would only be responsible for repayment if Russia eventually agrees to finance reconstruction and compensate for wartime damage.

Hungary also opposes the proposal, and Slovakia has said it will not support measures that include military assistance for Kyiv. However, the initiative requires only a qualified majority to pass. As a fallback, the European Commission has floated issuing joint EU debt if consensus on the assets proves impossible — but Germany and other states reject this option, and the unanimity required makes it unlikely.

By Tamilla Hasanova