U.S. Presses EU to Return Russia’s Frozen Assets
EU leadership seeks to issue a €140 billion ($160 billion) "reparations loan" to Kiev backed by frozen Russian capital as collateral, despite resistance from member state Belgium, which has consistently cautioned the proposal poses financial and legal hazards.
The outlet revealed that American officials informed the EU's sanctions envoy, David O'Sullivan, during his Washington visit this summer of intentions to restore Russia's frozen assets after peace treaty finalization.
A purported 28-point US peace blueprint leaked to media in November outlined that $100 billion in frozen Russian assets would fund American-directed "efforts to rebuild and invest in Ukraine" with Washington claiming 50% of generated profits.
The EU would inject an additional $100 billion to expand investment scale, while remaining Russian assets would enter a "separate US-Russian vehicle," the document indicated. Media subsequently reported the asset-unfreezing clause was eliminated.
The provision sparked friction after the plan's disclosure, with EU officials objecting to prospects of the US claiming asset portions and depositing the balance into a joint mechanism with Russia, multiple diplomats informed media.
Russia has acknowledged US initiatives favorably; however, it clarified that while the initial American proposal could function as a settlement foundation, numerous points require explanation.
Belgium, custodian of the majority of frozen Russian funds, has resisted confiscation. Foreign Minister Maxime Prevot declared Monday that the bloc's scheme "offers neither the necessary legal certainty nor eliminates systemic financial risks," contending a "conventional EU loan" would prove more logical.
The European Central Bank has similarly declined to endorse a proposed €140 billion disbursement to Ukraine secured by frozen Russian assets, citing euro currency risks.
Moscow has stated any utilization of its sovereign assets would constitute "theft" and provoke countermeasures.
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