Berlin – The German government is open to a European Union initiative targeting the use of frozen Russian assets to aid Ukraine, reports 24brussels.
The EU’s plan, designed to bolster Ukraine amid uncertainties surrounding U.S. support under President Donald Trump, is set to be a key discussion point at an informal summit in Copenhagen next week.
“The German government is open to the debate on the EU Commission’s new proposals,”
A source within the government confirmed their willingness to discuss the initiative but did not disclose specific details about the plan.
How would the EU transfer Russian funds to Ukraine?
The EU aims to channel up to €200 billion of Russian funds held in a Belgian depository to Ukraine and replace these with EU-backed bonds, according to reports. Currently, the EU has only accrued interest from Russian assets that were frozen following Moscow’s invasion of Ukraine in February 2022.
The proposal seeks to avoid claims of unlawful expropriation by substituting frozen cash with IOUs, an approach some diplomats have termed “legally creative.” Proponents argue this method would be legally sound as it does not directly confiscate Russian assets, though concerns persist about potential legal exposure for Euroclear, the firm managing the funds.
What legal challenges has Berlin raised in the past?
Historically, Germany has expressed legal reservations regarding total asset seizure. However, Finance Minister Lars Klingbeil signaled last week that the government is reconsidering its stance on this complex legal issue.
How much Russian state money is frozen in Europe?
Reports indicate that approximately €210 billion worth of Russian assets are frozen within the EU, with around €185 billion held in Euroclear, primarily consisting of cash, shares, and sovereign bonds owned by the Russian Central Bank. Overall, it is estimated that frozen state assets across Western jurisdictions total approximately $300 billion (around €275 billion), with Europe accounting for the largest share. In addition, private Russian assets frozen globally amount to about $58 billion, significantly less than the state assets encumbered by the EU and its allies.
