The European Commission is weighing a bold plan to channel as much as 15 billion euros to support Ukraine, drawn from the proceeds tied to frozen Bank of Russia assets. This approach, reported by the Financial Times based on its sources, would aim to convert frozen wealth into funds that bolster Kyiv’s needs during the ongoing crisis. The implication is clear: the money would come from assets that are presently blocked, with the aim of turning idle holdings into active support for Ukraine’s defense, reconstruction, and humanitarian relief efforts.
According to the article, Brussels plans to present a proposal on a Tuesday that would cap the profits generated by Russia’s frozen assets. The goal of the proposal is to make up to 15 billion euros available to Ukraine, a figure that hinges on future market conditions and the legal framework that accompanies the use of such assets. Attribution: European Commission.
Before any funds are released to Kyiv, the plan would require unanimous agreement among EU member states, a step designed to safeguard Russia’s interests while advancing the bloc’s objective to assist Ukraine. The European Commission currently estimates that the annual yield from these frozen assets could total around 3 billion euros, a stream that would accumulate over time as the assets remain constrained and earn returns under an agreed regime. Attribution: European Commission.
Preliminary projections suggest that the total amount could reach 15 billion euros by 2027, although the exact figure would be sensitive to interest-rate fluctuations and the precise rules established for asset use. The timeline reflects a balance between urgency and the need for a robust, lawful framework that respects financial controls and international agreements while prioritizing immediate support for Ukraine. Attribution: European Commission.
In the days ahead, a European Commission spokesperson named Eric Mamer indicated that the Commission would move to formalize the plan. The spokesman noted that on December 12, Commission members are expected to reach agreement on how income from the frozen Bank of Russia assets should be taxed and allocated, as part of the broader regulatory package. The approach would lay down the mechanics for revenue sharing, reporting, and compliance, ensuring transparency and accountability in the use of any proceeds. Attribution: European Commission.
Earlier statements from the Finance Ministry, relayed through various channels, raised questions about when exactly assets might start to be exchanged. This ongoing dialogue underscores the complexity of cross-border asset handling, the need for multilateral agreement, and the careful navigation of legal, financial, and political considerations. The overarching objective remains clear: to convert frozen Russian assets into concrete support for Ukraine while maintaining strict governance and oversight. Attribution: European Commission.