(BRUSSELS) – President Trump is in a deadlock with European Union leaders over the release of frozen Russian assets, as the US reportedly pressures Europe over the use of billions of pounds of Russian funds. The discussion comes amid plans to support Ukraine’s military as the war with Russia continues.
EU leaders have convened in Brussels to negotiate a deal to release frozen Russian assets, which have been untouched since the start of the invasion. Around £185 billion (€210 billion or $228 billion) of Russian funds are held in European accounts, with Belgium hosting a significant portion through EuroClear, a European securities house.
The EU has already immobilised these assets, but discussions have focused on using them to fund Ukraine to the tune of €90 billion ($98 billion) over the next few years. The United States has expressed concern over Europe’s control of the funds. US pressure appears linked in part to former President Trump, who has reportedly shown interest in the frozen assets.
Belgium has voiced caution, highlighting potential financial instability and liabilities if the assets are seized improperly. EuroClear has been downgraded by Fitch, and both Belgium and the European Central Bank are wary of risks to the euro and wider financial system.
France and Italy are seeking alternative solutions, such as common EU borrowing, rather than directly seizing Russian assets. EU leaders are aware that the ultimate fate of the funds may be decided in peace negotiations between Russia and Ukraine.
EU officials stress the importance of securing €90 billion ($98 billion) to cover Ukraine’s financial needs until the end of 2027. Without a plan, Ukraine risks running out of money early next year, a scenario that could undermine European solidarity and military support.
Belgium has insisted that any use of the assets must include shared risk across EU members. The European Council is determined to find a solution at the summit, balancing financial stability, EU principles, and support for Ukraine’s war effort. Leaders emphasised that failing to act could have consequences beyond Ukraine, potentially affecting the stability of Europe itself.
Frozen Russian Assets in Europe
| Location | Assets Held (€) | Assets Held (£) | Assets Held (US$) |
|---|---|---|---|
| Brussels, Belgium | 185 billion | 185 billion | 228 billion |
| EU total | 210 billion | 210 billion | 258 billion |
| Funds earmarked for Ukraine | 90 billion | 90 billion | 98 billion |
