Seven EU nations push to fund Ukraine aid with frozen Russian assets

Seven European Union member states have formally advocated for using revenue from frozen Russian assets to fund new financial and military assistance for Ukraine. In a joint letter sent on Sunday to top EU officials, the leaders of Estonia, Finland, Ireland, Latvia, Lithuania, Poland, and Sweden argued this approach is the most viable means to support Kyiv amidst its ongoing conflict with Russia.

Support for a Reparations Loan Model

The letter, addressed to European Commission President Ursula von der Leyen and European Council President Antonio Costa, strongly endorses the Commission's proposal to create a reparations loan financed by the cash generated from immobilized Russian sovereign assets held within the EU. The leaders described this option as "financially feasible and politically realistic," aligning with the principle that Ukraine has a right to compensation for damages inflicted by Russian aggression.

Urgent Call for a Decision and Underlying Rationale

Stressing that "time is of the essence," the seven leaders urged their EU counterparts to reach an agreement on the plan at the upcoming European Council summit this month. They argued that decisive action would strengthen Ukraine's defense capabilities and improve its position in any future peace negotiations. The letter framed the conflict as a defense of European security and values, stating that Russia's ambitions threaten the continent beyond Ukraine's borders.

Internal Opposition and Russian Condemnation

The proposal faces internal EU opposition. Belgian Prime Minister Bart De Wever, in a separate letter, warned that the plan is "fundamentally flawed," could violate international law, and risks provoking Russian retaliation against Belgium and the financial clearinghouse Euroclear. He also suggested the frozen assets might be needed as leverage in eventual peace talks. Russia has consistently denounced any move to use its frozen assets as illegal "theft," setting the stage for further geopolitical and legal tensions.