The European Union is considering a new formula for using frozen Russian assets to support Ukraine, while Belgium’s opposition remains one of the main obstacles to reaching an agreement.
Sweden, the Netherlands, Spain, and Poland, backed by the Baltic states, are pushing ahead with efforts to put the frozen assets of the Central Bank of Russia to use in financing Ukraine. The assets are worth approximately €210 billion, most of which are held by Belgium-based Euroclear.
The Belgian government continues to oppose such a move because of the legal and financial risks involved. Belgian Foreign Minister Maxime Prévot has warned that using the assets in a way that could be considered confiscation would have serious consequences. Euroclear is already facing legal proceedings in Russia.
To overcome the deadlock, discussions are underway about transferring the Russian assets from Euroclear to a new custodian owned and controlled by the EU. This would mean that the responsibility would no longer fall solely on Belgium but would instead be shared among EU member states.
Ukrainian Finance Minister Sergii Marchenko has supported this alternative, arguing that transferring custody from Belgium to the EU could reduce the risks and make the issue a shared responsibility of all 27 member states.
One proposal involves using Article 122 of the EU treaties to transfer the assets to a European custodian. Under this scheme, the Central Bank of Russia would continue to be considered the formal owner of the funds and could reclaim them once Russia pays war reparations to Ukraine.
Another option under discussion is the creation of a dedicated financial mechanism that would leave the €210 billion untouched while using the income generated by the assets—approximately €4 billion per year—to issue bonds and secure additional financing for Kyiv.
However, significant concerns remain. The European Central Bank, Belgium, Euroclear, and several member states fear that such an intervention could be perceived internationally as the confiscation of sovereign assets. According to these concerns, such a precedent could encourage investors and other countries to move their reserves out of the eurozone, potentially damaging the reputation and financial stability of the euro.
For now, it remains unclear whether transferring the assets to a common EU custodian will be enough to persuade Belgium and bring an end to the long-running political deadlock.
