The European Union is considering a dramatic measure to assert its position in Ukraine peace negotiations by potentially seizing approximately €200 billion ($209 bn) in frozen Russian assets, Politico reported on 25 February.

European governments are debating whether to take this step after being excluded from recent discussions between the US and Russia on ending the Ukraine war. The talks, held 18 February in Riyadh, Saudi Arabia, proceeded without EU representation.

“[With the Russian frozen assets] we can replace US support if the US is still going to decide not to support Ukraine anymore,” Estonian Foreign Minister Margus Tsahkna told journalists in Brussels on 24 Feb.

According to Politico, the majority of these assets—about €200 billion—are currently held in Brussels-based financial institution Euroclear and generating interest. The US holds only about $5 billion in Russian assets.

A divide exists among EU nations on the appropriate course of action. Baltic states, Nordic countries, Poland, Czechia, and EU diplomat Kaja Kallas support immediately transferring the funds to Ukraine.

“I don’t take the argument that it’s legally problematic… we need [the] political will to do it,” Lithuanian Foreign Minister Kęstutis Budrys said in an interview with Politico.

France, Germany, Italy, Spain, and European Commission President Ursula von der Leyen oppose confiscation. They worry about alarming international investors and losing leverage in peace negotiations.

“If you were to unfreeze [the assets] and give [them] to Ukraine, you don’t have it anymore and you can’t use it as a bargaining chip,” an unnamed EU diplomat told Politico.

French President Emmanuel Macron addressed the issue during a meeting with US President Donald Trump. Macron maintained that while using the proceeds from the assets during the war would be legal, seizing the reserves themselves would not be.

“It’s part of the negotiation at the end of the war,” Macron said.

Kallas acknowledged the challenges of moving forward with confiscation. “We need to have everybody’s support for this. So far we don’t,” she said during a press conference on 24 Feb.

The EU has legally established that these assets will remain frozen until Russia agrees to pay post-war reparations to Ukraine. Many EU nations view the €200 billion as potential funding for Ukraine’s reconstruction, estimated by the World Bank to cost $486 billion.

G7 finance ministers plan to discuss future support for Ukraine at the G20 meeting in Cape Town this week.

Read also:

• US to transfer seized Russian assets to Ukraine for the first time
• Ukraine seeks Trump’s approval to buy US arms with $300 billion in frozen Russian assets
• Trump administration disbands Russian assets seizure taskforce