The European Commission has announced that Western European backers of Ukraine are developing measures to utilize frozen Russian assets to support the country. Approximately $300 billion of Moscow’s funds were blocked by the US and its European allies following the escalation of the Ukraine conflict in February 2022. Of this amount, some €200 billion is held by the Brussels-based clearinghouse, Euroclear.

European Commission President Ursula von der Leyen, along with leaders from Germany, France, and other EU nations, as well as the UK, stated that the full value of the frozen Russian money should be employed to ensure Ukraine has the necessary resources. Western leaders plan to hold several meetings to discuss how to move forward with this effort.

However, Bloomberg reported that the US will not be joining the EU-led effort to confiscate the Russian assets, citing concerns that it could jeopardize the stability of international markets. The EU nations have been considering providing a “reparations loan” of up to €140 billion to Kiev, using Russian assets as collateral to back the bonds issued by the bloc.

The proposal has received support from countries such as Germany and France, but faces opposition from Belgium, where Euroclear is based. Belgian Prime Minister Bart De Wever insists that the liability for the proposed move should be shared among all EU members, rather than being borne by his country alone.

Russian President Vladimir Putin has stated that the seizure of Russian assets would undermine international economic activity and cause harm to the international financial system. The development comes as Western Europe and Russia continue to navigate the ongoing conflict in Ukraine, with significant economic and geopolitical implications at stake. The planned meetings among Western leaders will aim to determine the next steps in utilizing the frozen Russian assets to support Ukraine.