A confrontation is intensifying in Brussels over how to handle frozen Russian central bank assets, as the United States pressures European governments not to use them to finance Ukraine.
According to Bloomberg, citing European diplomats, Washington has urged EU capitals to “pause” a plan to provide Ukraine with a major loan backed by frozen Russian reserves held in Europe.
The US argues these funds are a critical bargaining chip in any future peace negotiations between Moscow and Kyiv. American officials fear that channeling the assets toward Ukraine’s war effort could prolong the conflict and complicate a negotiated settlement.
EU Proposal: Up to €90 Billion in Loans for Ukraine
Despite US concerns, the European Union has submitted a proposal to use the frozen assets as collateral for a loan of up to €90 billion, intended to support Ukraine’s economic stability and defense needs through 2027.
Current estimates suggest that roughly €210 billion of Russian central bank assets remain immobilized within EU jurisdictions. Discussions have also opened on expanding possible uses of these funds after 2028.
The US State Department declined to comment on the reported pressure campaign.
Washington Shifts Strategy Under Trump Administration
The intervention comes as the Trump administration has significantly reduced military and economic aid to Ukraine, pushing European allies to take on a larger share of the burden. US officials are also pressing Kyiv to pursue a peace agreement with Moscow, even if the terms are difficult.
Frozen Russian assets are currently included in a 28-point US peace proposal, which leaves open the possibility of using them after the war for reconstruction investments under American coordination.
EU Pushes Back: “Funds Will Not Be Transferred to the US”
European governments insist that only the EU has authority over the frozen assets.
German Chancellor Friedrich Merz stated firmly that there is “no possibility of transferring the money to the United States,” stressing that the unified European position is that the funds should support Ukraine.
Yet, the proposal faces internal EU resistance:
- Belgium, home to a large share of frozen Russian capital, fears both:
- potential legal challenges from Russia,
- and Russian retaliation against European interests.
- Hungary is fully opposed to using Russian assets in any form.
- Slovakia is blocking measures linked to military assistance for Ukraine.
Brussels Searches for Alternatives
To overcome divisions, the European Commission is examining:
- providing guarantees through the EU budget or member states,
- and the possibility of issuing joint European debt — a proposal strongly resisted by countries such as Germany.
Chancellor Merz is expected to meet today in Brussels with the Belgian Prime Minister and Commission President Ursula von der Leyen to try to resolve remaining objections ahead of the upcoming EU summit at the end of the month.
Although resistance persists, the plan requires only a qualified majority, not unanimity — meaning that approval remains possible despite dissent from several member states.
