EU Ministers Meet in Copenhagen to Discuss Using Frozen Russian Assets for Ukraine

Edited by: Татьяна Гуринович

European Union economic and financial affairs ministers convened in Copenhagen on September 19, 2025, to discuss a proposal for utilizing frozen Russian assets to provide financial support to Ukraine. This meeting highlights a coordinated European effort to address Ukraine's ongoing financial needs amidst the protracted conflict.

German Finance Minister Lars Klingbeil emphasized the need for a thorough examination of the proposal, stating Germany's commitment to facilitating progress rather than obstructing it, while awaiting specific recommendations from the European Commission. Spanish Economy Minister Carlos Cuerpo echoed this sentiment, expressing Spain's support for the initiative and noting the nation's proactive steps in reducing imports of Russian liquefied natural gas.

The discussions in Copenhagen are part of a broader international dialogue, as G7 nations have also been accelerating discussions on the use of frozen Russian assets to bolster Ukraine's defense. The total value of these frozen Russian assets is estimated to be around USD 300 billion in G7 countries, with €194 billion held by Euroclear in Belgium. Of these, about €170 billion have already been converted into cash. This financial reservoir represents a substantial potential resource for Ukraine, which has already received external financing exceeding USD 138.75 billion since the commencement of the invasion. Ukrainian Finance Minister Serhiy Marchenko previously emphasized the critical importance of international support for Ukraine's budget. According to Ukraine's estimates, the need for external financing for the next four years under a new IMF program could be from USD 150 to 170 billion. In 2025, Ukraine expects full coverage of its external financing needs of USD 39.3 billion.

The European Commission has been actively exploring mechanisms for repurposing these assets, having discussed their potential use in March 2025. A key aspect of the current deliberations involves navigating the legal complexities associated with such a move. While some countries, like the United States and Canada, have introduced legislation to empower governments to confiscate frozen Russian assets, the legal framework for outright seizure remains a subject of debate among legal experts, with concerns persisting regarding sovereign immunity and potential legal challenges.

One proposed approach involves a "reparations loan" mechanism, where a loan is provided to Ukraine using cash balances from frozen Russian assets, without affecting Russia's claims to these funds. This "legally creative" solution aims to provide critical financial support without immediate legal risks. Germany's cautious yet supportive stance reflects a pragmatic approach to ensure legal and procedural soundness, aligning with broader EU concerns, such as those expressed by Belgium, regarding potential legal ramifications and financial stability risks. Germany's shift in position is partly influenced by concerns that a reduction in US aid could disproportionately burden its economy. Belgian Finance Minister Vincent Van Peteghem expressed concern, calling the proposal "rather vague" and emphasizing the need to share risks among all EU member states. The European Central Bank also called for more details on the European Commission's proposal.

The ongoing conflict in Ukraine continues to highlight the critical need for sustained international financial assistance. The discussion among EU ministers in Copenhagen represents a significant step in exploring innovative financial solutions to support Ukraine's budget and its ongoing defense efforts, demonstrating a continued and coordinated commitment from European nations.

Sources

  • Deutsche Welle

  • Eurozone finance ministers back G7 push on Russian frozen assets, but legal questions remain

  • EU devises scheme to squeeze more profit from Russian frozen assets

  • How Europe could seize frozen Russian assets to fund Ukraine

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