Ukraine names EU countries blocking transfer of frozen Russian assets

Deputy Head of the Office of the President of Ukraine, Iryna Mudra, has identified Belgium, France, Germany, and Italy as the primary European Union countries obstructing efforts to confiscate and transfer frozen Russian assets to Ukraine.

Speaking in a televised interview, as reported by Ukrinform, Mudra said these countries are reluctant to move forward with asset seizure due to fears of retaliation from Moscow.

“Belgium, because it holds the funds in Euroclear, as well as France, Italy, and Germany, are the biggest opponents,” she said. “They are concerned that Russian authorities will confiscate their companies’ assets in response. But our argument is that this fear does not deter Russia — they have already seized, and will continue to seize, the assets of what they label ‘unfriendly countries.’”

Mudra explained that most of the approximately $300 billion in frozen Russian sovereign assets are held in institutions such as Euroclear, Clearstream, and various central banks. Despite mounting pressure, these institutions remain unwilling to release the funds.

She emphasised that Ukraine does not require the full sum immediately, proposing instead the creation of a European-based fund to manage the assets.

“These funds can be managed wisely to ensure Ukraine benefits as much as possible,” Mudra said. “This fund would also serve as the financial base for implementing decisions made by the compensation commission, which we are currently establishing.”

According to Mudra, diplomatic negotiations for the formation of the compensation commission are already underway. A third component of the effort, she said, is the establishment of a compensation fund that would be filled by confiscated Russian assets and used to cover war-related damages sustained by Ukraine.

However, even the full $300 billion in frozen Russian assets would be insufficient, she warned.

“The World Bank and European Commission estimate the current damage to Ukraine at approximately $586 billion — already more than double what’s available,” she noted. “And if we begin calculating the losses from 2014, the total figure could reach one trillion dollars.”

By Vugar Khalilov