(BRUSSELS) – As Ukrainian President Volodymyr Zelensky embarks on a high stakes diplomatic tour making a “shopping list” of military aid, some former NATO officials argue that the fastest and least painful way to fund Ukraine’s war effort is not more fundraising from EU states, but unlocking frozen Russian central bank assets.
Jamie Shea, a former NATO deputy assistant secretary-general, told Times Radio that while using the interest on these assets something the EU has already been doing is helpful, the truly effective option would be to use the full value of the roughly €200 billion held in Russian central bank deposits in Europe. That sum, he said, could be leveraged to act as collateral for a long term loan to supply weapons to Ukraine.
At present, some EU member states are pushing back on that idea. Belgium, for example, is reportedly wary of acting unilaterally, fearing that if Russia were to take legal action in response to such a move, Belgium could be left responsible for any court judgement. Shea says the EU must show solidarity and reassure those states they will not be abandoned.
Using the whole deposit base rather than just its interest, he states, would provide a much more stable “war chest” to bankroll air-defence systems, drones, ammunition, and other supplies that Ukraine urgently needs.
The French contribution to Ukraine’s defence, he noted, includes a pledge of 100 Rafale jets. However, those aircraft are not expected to arrive soon — as long as ten years, in Shea’s assessment — by which time the conflict may have evolved significantly. Closer at hand, he said, are commitments for ground systems like the SAMP/T air defence system, co-production of drones, and ammunition, which can be deployed more rapidly.
Shea further outlined three potential approaches for the EU to raise funds:
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Member states contribute more money directly.
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The EU as a bloc borrows via debt markets.
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(Most appealing) Use the frozen Russian central bank assets as collateral to raise funds without placing heavy immediate burden on EU budgets.
He argued that while many EU states are under fiscal strain, and some (like Germany) are wary of raising debt, utilising the Russian central bank assets is technically simpler and politically more viable in the short term.
The interview comes amid Zelensky’s tour through several European nations including visits to France, Greece, and Spain as he seeks to revitalise support and secure more military aid. Shea interprets this effort as part of a broader strategy to draw countries “which may have fallen behind” back into Ukraine’s support efforts.
If the frozen assets could be tapped effectively, Shea believes it would provide a timely and reliable funding stream, helping Ukraine maintain momentum on the battlefield without overly burdening European partners.