Joint initiative decision from four European Union countries for frozen Russian assets

Sweden, the Netherlands, Poland, and Spain are preparing to send a joint letter to the European Commission aiming to reuse the frozen assets of the Russian Central Bank to finance Ukraine.

Preparation of the Joint Letter

Sweden, the Netherlands, Poland, and Spain plan to send a formal joint letter to the European Commission within this week.

The letter to be sent requests the resumption of efforts regarding the use of frozen assets belonging to the Russian Central Bank to finance Ukraine.

Sanctions and Euroclear Assets

The assets of the Russian Central Bank were frozen within the scope of European Union sanctions introduced following the Russia-Ukraine war that began in February 2022.

A very significant portion of these Russian assets located throughout the European Union is held in the accounts of the Belgium-based financial institution Euroclear.

Belgium's Risk-Sharing Condition

Belgian Prime Minister Bart De Wever is putting forward certain conditions for the Russian assets, 185 billion euros of which are held in Euroclear in his country, to serve as loan collateral.

The Belgian administration stipulates the fair sharing of potential risks, joint action, and the clear establishment of legal bases.

Alternative Borrowing Formula

Due to Belgium not being fully convinced during this process, European Union countries had decided to provide 90 billion euros of funding to Ukraine through joint borrowing.

Ukrainian President Volodymyr Zelenskyy had stated that a 23 billion euro deficit could arise in his country's defense budget this year and called for additional financial support.

Kyiv Visit and Legal Risks

Belgian Foreign Minister Maxime Prevot reiterated his country's stance during his official visit to Kyiv last week.

Prevot argued that potential legal and financial risks regarding the use of frozen assets should be shared among all European Union countries.