EU plans to use Russian assets: 140 billion for Ukraine!

EU plans to use Russian assets: 140 billion for Ukraine!

Amid a host of challenges to support for Ukraine, the EU has unveiled an ambitious plan to leverage frozen Russian state revenues. According to information from Radio Cologne The EU plans to provide up to 140 billion euros from Russia's central bank funds for loans to Ukraine. This initiative aims to support Ukraine with its enormous financing needs for 2026 and 2027.

At the last autumn summit of heads of state and government, the EU Commission was commissioned to develop a concrete proposal for the use of the frozen assets. Despite the support of Chancellor Friedrich Merz and EU Commission President Ursula von der Leyen, there are significant concerns, particularly from Belgium. Brussels is calling for alternative financing options to be considered because of concerns about legal risks and possible negative impacts on European companies.

Financial prospects of Ukraine

Ukraine's financial needs are estimated to be in the three-digit billion range. Experts from the International Monetary Fund (IMF) estimate the necessary budget support at around 60 billion US dollars. In addition, additional funding of at least 80 billion euros is required for weapons and ammunition. Ukrainian President Volodymyr Zelensky has already highlighted the urgency of these loans for 2026 to strengthen the country's defense measures.

In addition, it was recently decided to transfer 1.5 billion euros from interest income from frozen Russian state funds to Ukraine. This interest income is a direct result of the sanctions imposed in response to Russia's war of aggression. Loud daily news This amount aims to finance military equipment and support the reconstruction of Ukraine. Ukrainian Prime Minister Denys Shmyhal acknowledged this step as an important contribution.

Reactions from Russia and legal concerns

Russia has already threatened retaliation if the EU follows through on its plans to use the funds. Kremlin spokesman Dmitry Peskov announced that the EU's steps would not go unanswered. The risk of legal disputes is a key concern for Belgium. To address these concerns, a comprehensive risk distribution among EU member states is sought.

The discussion about the frozen assets is therefore not only a diplomatic but also a financial undertaking. Around 200 billion euros of Russian assets are currently on hold in Europe and alternative uses are being considered. How 20 minutes reported, frozen funds amounting to 7.45 billion francs are also being discussed in Switzerland.

Negotiations are in full swing and the next steps are eagerly awaited. The EU faces the challenge of keeping an eye on both Ukraine's financial needs and the legal and political risks with regard to Russia. This situation requires a skillful approach and a good knack for dealing with the sensitive realities of the geopolitical situation.