EU faces stalemate over unlocking €200bn frozen Russian assets to fund Ukraine

After months of inertia, Sweden reopened the debate on using the EU’s €200 billion of frozen Russian assets to support Ukraine, citing a €27 billion shortfall in Kyiv’s 2026 budget. The European Commission says it will not act without a unified instruction from member states, while Belgium’s Bart De Wever warns that Belgium cannot back a move without similar commitments from other holders such as Japan, the UK and the US.

At a European Policy Center event, Ukraine’s finance minister Serhii Marchenko and commentator Hugo Dixon suggested moving custodianship away from Euroclear to spread legal risk across the EU. Dutch-born think-tank director Thomas Venon promoted the “WOLF” loan scheme, proposing a 15-20-year freeze to generate a high-yield loan. Critics like finance professor Wim Schoutens caution that stripping Euroclear could damage market confidence and invite legal challenges. Luxembourg’s foreign minister Xavier Bettel expressed frustration at the lack of a “solidarity mechanism,” underscoring the political stalemate that keeps the assets frozen.