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EU devises scheme to squeeze more profit from Russian frozen assets
The European Union is looking to extract billions of extra euros from frozen Russian assets by moving them into riskier investments — via a plan that would increase aid to Ukraine while avoiding accusations of stealing Moscow's money.
The EU executive is considering transferring almost €200 billion of frozen Russian state assets held in Belgium into a new, riskier investment fund that would pay out higher interest, four officials with knowledge of proceedings told POLITICO.
The goal is to generate more profits to help keep Ukraine’s war-battered economy afloat amid U.S. president Donald Trump’s threats to halt funding. The assets were frozen in 2022 in response to Russia's full-scale invasion of Ukraine.
However, the move would stop short of confiscating the Russian assets altogether — which is opposed by several EU states including Germany and Italy over financial and legal concerns.
By only spending the interest and leaving the underlying capital untouched, the EU hopes it can avoid accusations of breaching international law.
The EU executive is considering transferring almost €200 billion of frozen Russian state assets held in Belgium into a new, riskier investment fund that would pay out higher interest, four officials with knowledge of proceedings told POLITICO.
The goal is to generate more profits to help keep Ukraine’s war-battered economy afloat amid U.S. president Donald Trump’s threats to halt funding. The assets were frozen in 2022 in response to Russia's full-scale invasion of Ukraine.
However, the move would stop short of confiscating the Russian assets altogether — which is opposed by several EU states including Germany and Italy over financial and legal concerns.
By only spending the interest and leaving the underlying capital untouched, the EU hopes it can avoid accusations of breaching international law.
https://www.politico.eu/article/eu-russia-frozen-assets-moscow-money-war-ukraine/