EU wants to use frozen Russian assets to finance Ukraine

The bloc is looking for ways to confiscate the funds

EU leaders have instructed the European Commission to prepare proposals on ways of using frozen Russian assets to rebuild Ukraine, Russian media reported on Friday. The statement comes as EU leaders wrapped up a two-day summit in Brussels.

“We have to talk about the use of [frozen] assets that we have – Russian [frozen] assets. We have over €300 billion ($292 billion) of [frozen] assets and how we can use them in benefit of Ukraine,” Estonian Prime Minister Kaja Kallas said on Friday, as quoted by CNN.

Legally, frozen funds still belong to Russia or its citizens. In order to spend those assets, the EU needs to find a way of confiscating them. According to media reports, EU leaders will discuss the possible confiscation of frozen Russian assets at a summit in Brussels in May.

European Commission President Ursula von der Leyen said the EU was looking to provide Ukraine with about €1.5 billion each month. The bloc’s finance ministers have been tasked with pulling together the money.

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The EU seized property belonging to Russian businessmen and companies, along with the assets of the Russian Central Bank, as part of sanctions against Moscow. The idea of using the funds in Ukraine was first put forward several months ago and was supported by politicians such as Ukrainian President Vladimir Zelensky, former UK prime minister Liz Truss, and president of the European Council Charles Michel.

Top US officials including Treasury Secretary Janet Yellen warned that using those funds in Ukraine could be illegal and would discourage other countries from investing in the United States.

Russia strongly criticized the seizure of its assets by the Western nations, with Foreign Minister Sergey Lavrov saying the asset freeze essentially constitutes theft.

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