Sweden, the Netherlands, Poland and Spain called for new mechanisms to be assessed so that the Russian assets frozen by the European Union could be used more extensively for Ukraine's benefit.
The foreign ministers of the four countries sent a joint letter to Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy, and Helen McEntee, Ireland's minister for foreign affairs, whose country holds the rotating EU presidency. The letter was signed by Sweden's Foreign Minister Maria Malmer Stenergard, Poland's Foreign Minister Radosław Sikorski, the Netherlands' Foreign Minister Tom Berendsen and Spain's Foreign Minister José Manuel Albares Bueno.
Call for new options to finance Ukraine's loan
The letter said the EU had increased its support for Ukraine's ability to defend itself. It described the decision to provide Kyiv with a €90 billion loan for the 2026-2027 period as an important step in this direction.
The letter said Ukraine would need additional financial assistance in both the short and long term and called for the use of frozen Russian assets for Ukraine's benefit to be reconsidered.
It argued that this method would make Moscow pay for the cost of the damage caused in Ukraine and ease the financial burden on European taxpayers. It also said that using the Russian assets would help maintain support for Ukraine and increase pressure on Russia.
Call to share risks among EU countries
Sweden, the Netherlands, Poland and Spain proposed that technical experts from the European Commission work in close coordination with EU member states to examine options concerning the frozen Russian assets.
They emphasized that the financial and economic risks that possible mechanisms could create should be shared by all EU countries. They also called for the compatibility of the decisions with international law to be assessed as a separate issue.
The joint letter called for the matter to be revisited after a comprehensive technical analysis had been completed. It said the informal meeting of EU foreign ministers to be held in Ireland on September 1-2 could provide a suitable setting to discuss the use of frozen Russian assets.
About €185 billion is held at Euroclear
The EU froze assets belonging to the Central Bank of Russia under sanctions imposed after the Russia-Ukraine war began in February 2022. A significant portion of these assets is held at Euroclear, the securities depository and settlement center in Brussels.
The European Commission had previously considered using the frozen Russian assets as collateral for a loan to be provided to Ukraine. Belgian Prime Minister Bart De Wever had said that implementing this option would require the legal and financial risks to be distributed among EU countries, joint action to be taken and a strong legal foundation to be established.
About €185 billion in Russian assets is held at Euroclear in Belgium. After Belgium's objections could not be overcome, EU countries decided to provide Ukraine with €90 billion through joint borrowing.
Ukrainian President Volodymyr Zelenskyy said his country's defense budget shortfall for the current year could reach approximately €23 billion and requested additional financial assistance.
