122 MEPs propose transferring €200bn in frozen Russian assets to Ukraine

122 members of the European Parliament have called on the European Commission to resume discussions on the use of frozen Russian state assets to support Ukraine. The total value of these funds exceeds €200 billion, a significant portion of which is held by the Belgian depository Euroclear.

Proposal for a new mechanism

In their appeal to the European Commission, MEPs propose removing Russian assets from Euroclear’s management and transferring them to a special pan-European mechanism. This mechanism would assume the legal obligations associated with these funds and distribute potential financial and legal risks among EU member states.

Specifically, this refers to risks that may arise from court lawsuits or possible retaliatory measures by Russia.

Context of the initiative

This initiative emerged against the backdrop of new discussions within the EU regarding long-term financing for Ukraine. The European Commission had previously considered the possibility of using frozen Russian assets to provide Kyiv with additional financial support.

However, EU countries were unable to reach a common position due to the legal and financial risks associated with such a decision.

Position of Belgium and Brussels

Belgium, where the majority of Russian funds are held, has expressed particular concern. Brussels fears that in the event of court proceedings, the Belgian side could face the greatest pressure.

Supporters of the proposed mechanism believe that transferring assets to the pan-European level would allow potential risks to be distributed among EU member states.

Meanwhile, the European Commission has not yet announced the launch of such a mechanism. In Brussels, officials stated their readiness to return to discussing the issue of Russian assets, provided that EU countries can obtain sufficient guarantees and agree on a joint decision.