"Quite disappointed": Sweden slams declining bilateral aid to Ukraine

Sweden plans to once again raise within the European Union the issue of using around €200 billion in frozen Russian sovereign assets to support Ukraine, as Kyiv faces mounting financial needs and bilateral assistance from some European partners declines.

Swedish Foreign Minister Maria Malmer Stenergard raised the issue during a meeting of the Coalition of the Willing in Kyiv, Euractiv reports.

According to the publication, representatives of several other countries also discussed the frozen Russian assets during the meeting. Stenergard said she intends to bring the issue back to the European agenda as 2027 approaches and Ukraine’s financial requirements continue to grow.

The Swedish minister linked the push in part to declining bilateral assistance from individual EU countries.

“I am quite disappointed that bilateral support is more or less decreasing, and countries tend to refer to the EU loan,” Stenergard said.

She argued that relying primarily on the EU loan mechanism would not be sufficient, stressing that Ukraine needs additional resources to sustain its war effort and strengthen its defence capabilities.

Around €200 billion of Russia’s sovereign assets are currently frozen in European countries, with the bulk held by Belgium-based Euroclear. The EU already uses profits generated by the frozen assets to support Ukraine, but transferring the principal itself remains highly contentious because of significant legal, financial and political risks.

Belgium has been the strongest opponent of such a move, given that most of the assets are held within its jurisdiction. Belgian Foreign Minister Maxime Prévot reiterated during a visit to Kyiv last week that Belgium could not bear alone the risks associated with potential future claims by Russia.

Brussels is concerned that Moscow could successfully challenge the seizure or use of the assets in court, potentially leaving Belgium or Euroclear liable for compensation. Belgium has therefore called for the legal and financial risks to be shared among EU partners.

Despite renewed calls from Sweden and other countries, there are currently no clear signs that the EU is preparing to change its position on the principal of the frozen assets.

A senior EU official said that concerns and reservations among several member states remain unchanged, meaning the issue may not return to the bloc’s formal agenda in the immediate future.

The debate comes as Ukraine faces a growing defense financing gap. President Volodymyr Zelenskyy has said Kyiv needs an additional €23.5 billion beyond the European assistance already planned.

Ukraine is also urging the EU to accelerate the next tranche of a €90 billion loan. On August 24, the European Commission transferred €6.1 billion to Kyiv, while European Council President António Costa said he had taken note of Zelenskyy’s request to speed up the next payment.

The renewed discussion over Russia’s frozen sovereign assets therefore comes at a critical moment for Kyiv, as Ukraine seeks additional sources of financing while expanding aid through individual European national budgets becomes increasingly difficult.

By Vafa Guliyeva