EU poised to unlock $135 billion in Russian frozen assets for Ukraine

European Union member states are expected to announce a decision on the confiscation of Russia’s frozen assets either this week or next, The Times reported on December 8, citing senior government sources.

According to the report, British Prime Minister Keir Starmer believes an agreement on seizing up to £100 billion ($135 billion) in Russian assets frozen across Europe is imminent and could be finalised “within days,” as Ukraine peace negotiations reach a “critical stage.”

Starmer hosted Ukrainian President Volodymyr Zelenskyy, French President Emmanuel Macron, and German Chancellor Friedrich Merz in London on Monday to discuss the latest U.S. peace proposals. The leaders also focused on the potential seizure of Russian state funds held in European banks, which could be used to support Ukraine’s ongoing defence or finance reconstruction under a future peace agreement.

Following the meeting, senior officials expressed confidence that a breakthrough was near. Around £8 billion of frozen Russian assets are currently held in the United Kingdom.

European governments view these funds as a vital source of leverage for Kyiv and its partners in U.S.-led peace talks under President Donald Trump. The assets could provide Ukraine with stable support for at least two more years, strengthening its position while European capitals worry that Russian President Vladimir Putin may be gaining the upper hand. The frozen funds are also considered one of the few measures capable of preventing Washington from pushing Kyiv into an unfavourable settlement.

The primary obstacle remains Belgium, where most of the frozen Russian assets—mainly held at the Euroclear depository—are located. Brussels has resisted confiscation, warning that the country could face legal liabilities equivalent to roughly one-third of its annual GDP.

Despite these concerns, a British government source expressed optimism: “We hope that the agreement will be concluded around next week,” the official told The Times.

Earlier, on September 13, 2025, the European Commission proposed a mechanism to transfer frozen Russian assets to Ukraine by replacing the funds with EU-backed debt. Four days later, the Commission suggested using €25 billion ($30 billion) held in private EU banks for a “reparation loan,” in addition to the €140 billion ($163 billion) frozen at Euroclear.

By Tamilla Hasanova