US pressure to prevent the use of Russian assets to support Ukraine
A senior Ukrainian official revealed differences of opinion between Washington and some European capitals, indicating that the US administration is exerting intense diplomatic pressure on European countries to dissuade them from proceeding with the plan to use frozen Russian assets to finance Kyiv's military and economic needs. This comes as Ukrainian President Volodymyr Zelenskyy continues his strenuous efforts to convince European leaders of the necessity of taking this crucial step for his country.
Intense diplomatic activity in Brussels
In statements to AFP, the Ukrainian official confirmed that Zelensky intends to travel to Brussels personally in a final, decisive attempt to persuade EU leaders to adopt a resolution allowing the use of Russian assets or revenues for the war effort and reconstruction in Ukraine. The official noted that seven European countries remain hesitant and have not yet declared their explicit support for this mechanism, further complicating the political landscape within the EU.
Size and distribution of Russian assets
This issue is significant because of the sheer volume of funds involved. Russian assets frozen in Western countries are estimated at around €210 billion (approximately $230 billion). These assets were frozen by the European Union and the G7 following Russia's invasion of Ukraine in February 2022. The vast majority of these funds are held within European financial institutions, particularly in Belgium, placing the greatest burden of the decision and the associated risks on the European Union.
Legal complexities and economic risks
To understand the background of American pressure and European hesitation, one must consider the complex legal and economic dimensions of this issue. The confiscation of assets belonging to a former sovereign state is rare in international law, and many Western capitals and central financial institutions fear that such a move could undermine confidence in the global financial system, particularly in the euro and the dollar as global reserve currencies. There are also genuine concerns that direct confiscation could provoke retaliatory measures by Moscow against remaining Western assets in Russia, as well as lead to lengthy legal battles that could last for years.
The importance of the European summit and its expected impact
All eyes are now on the meeting of EU leaders in Brussels, where a long-term funding package for Ukraine covering the next two years is scheduled to be discussed. This meeting is pivotal not only for determining the fate of frozen assets but also for outlining the future of Western support for Kyiv as military operations continue. Failure to reach an agreement on funding sources could pose existential challenges to the Ukrainian economy and its defense capabilities, making Zelensky's visit and the summit's outcomes a geopolitical event with implications far beyond Europe.
