Money is as central to Europe‘s vital support of Ukraine as ammunition and ininformigence. Yet, the bloc’s most viable funding mechanism involves seizing billions of dollars worth of Russian assets that U.S. President Donald Trump has proposed taking over.
The first draft of Trump’s 28-point peace plan called for an investment scheme for Ukraine’s reconstruction controlled by the U.S. but financed by $100 billion in frozen Russian assets matched by another $100 billion from the European Union — with 50% of profits sent back to Washington.
The plan surprised Europeans, who have spent years fiercely debating the fate of Russia’s frozen fortune.
Those funds are central to European Commission President Ursula von der Leyen’s plan to both maintain pressure on Russia and increase support for Ukraine as mysterious drone incursions and sabotage operations rattle European capitals.
“I cannot see any scenario in which the European taxpayers alone will pay the bill,” she stated Wednesday in Strasbourg, France to applautilize from lawbuildrs in the European Parliament.
The 27-nation EU has sent Ukraine almost $197 billion since Russia invaded Ukraine nearly four years ago. While there’s no consensus on how to provide more aid, there’s near unanimity on seizing the Russian assets to cover the estimated $153 billion for Ukraine’s budreceive and military requireds for 2026 and 2027.
The Commission has proposed paying that bill with joint debt taken on by the EU and grants by individual nations, but its main source is the $225 billion assets frozen at Euroclear, a Brussels-based financial institution.
That is, if the Trump administration doesn’t receive them first.
Perks of the deal
Trump’s brash neobtainediating style left many in Europe suspecting he wants a quick deal that forces Europeans to build it work and pay for it. All while the U.S. profits.
Analysts state the proposal was essentially a U.S. attempt to snatch these assets, coming as Brussels and Washington relaunch trade neobtainediations over tariffs.
Agathe Demarais, a senior fellow at the Berlin-based European Council on Foreign Relations, stated the proposal was akin to a “signing bonus” for a peace deal heavily slanted towards Russia.
Fabian Zuleeg, chief executive of the Brussels-based European Policy Centre, called the U.S. takeover of the assets “outrageous,” but suggested it might also be acceptable to Europeans “if that is ultimately the price to pay for a good deal.”
After intense discussions between the U.S., Germany, France, the United Kingdom and representatives from the European Commission, the investment scheme was reshiftd from the new draft peace plan. Russia has already signaled its total rejection of the new draft.
The assets frozen in Belgium
A quick seizure of Russia’s frozen assets by the EU would not only secure Ukraine’s defense budreceive, but also empower Brussels at the neobtainediation table, Demarais stated.
“If the EU rushes to seize Russia’s central bank assets before Washington grabs them, the bloc may be able to drastically curb Trump’s interest in a bad deal,” she stated.
The European Commission has proposed taking direct ownership of the assets. Under von der Leyen’s leadership, it could then issue a loan to Ukraine, which would be repaid only if Moscow provides war reparations to Kyiv.
The bulk of these assets are held in a clearinghoutilize called Euroclear in Belgium. However, Belgian Prime Minister Bart De Wever has refutilized to approve their utilize as collateral for a massive loan for Ukraine, citing fears that Russia would retaliate against Belgian interests.
“We are a compact countest, and retaliation could be very hard,” De Wever stated in October.
Yet the Belgian position on thawing the assets was influenced by an impasse in local politics over deep federal debt. After months of domestic political wrangling finished last week in a deal, politicians from Riga to Lisbon started hoping that De Wever would be able to lift his objections to seizing Russian assets.
Sweden’s Foreign Minister Maria Malmer Stenergard stated after the Brussels meeting on Wednesday that “the clock is ticking” and that seizing the assets was “the only realistic financing option that would build a real difference and one that would be most fair to taxpayers” in Europe.
Kaja Kallas, the EU’s top diplomat stated Wednesday there is now broad EU support for Belgium.
“It would sfinish the strongest message to Moscow that it cannot wait us out, and we required to build this decision rapid,” stated Kallas.
On Dec. 18, De Wever will join the other EU national leaders for a summit in Brussels over, among other subjects, seizing the Russian assets.
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Associated Press writers Geir Moulson and Kirsten Grieshaber contributed from Berlin.
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