EU wants quicker action on frozen Russian assets to finance Ukraine

LONDON – European Union heads of state will call for faster action on the use of frozen Russian assets at a meeting next week amid mounting pressure from US President Donald Trump, according to a document seen by CNBC.

The European Commission, the executive arm of the European Union, is studying how to use about 175 billion euros ($204 billion) in cash owed from frozen Russian assets held in Europe to further support Ukraine’s treasury. The Trump administration pushed its counterparts in the G7, which includes Italy, France and Germany, to seize billions of dollars in frozen Russian assets, according to the Financial Times.

So far, European countries have used profits from these assets to help Kiev financially, but some countries have been concerned about taking further action due to potential financial and legal issues.

“The European Council is committed to finding ways to help meet Ukraine’s urgent needs for the period 2026-2027, including its military and defense efforts. It therefore calls on the Commission to submit concrete proposals as soon as possible that include the possible use of cash balances linked to frozen Russian assets,” a draft document seen by CNBC said.

The document forms the basis for talks between the 27 EU heads of state who are scheduled to meet in Brussels on Thursday.

Belgium has been particularly strict on the issue, given that it hosts Euroclear – the financial institution that has the bulk of Russian state assets that have been frozen in Europe since Moscow’s large-scale invasion of Ukraine in 2022. The Belgian leadership is concerned about the legal consequences once the war ends and wants EU countries to commit to burden-sharing responsibilities.

“In this context, the European Council stresses the importance of ensuring fair burden-sharing and coordinating efforts with the G7 partners,” said the document seen by CNBC, which forms the basis for next week’s agreement.

Euroclear CEO Valérie Orbin told CNBC earlier this month that her job is also to draw leaders’ attention to the implications of their decisions.

“We have been very vocal in making sure that we respect the rule of law,” Orban said, adding that it is about ensuring that investors do not lose confidence in investing in Europe.

“The one thing that is very important is that we continue to be very attractive to international investors, and especially when you see the huge financing needs of Europe in order to support European sovereignty, in order to support the transition to a greener economy, digital innovation, we really need to remain very attractive to external investors,” she said.

Next week’s meeting comes at a time of increasing pressure on European governments to support Ukraine after Trump withdrew US financial and military support for Kiev. Data from Kiel InstituteIt showed that between July and August, Ukraine received about 7.5 billion euros in financial and humanitarian support. Of the newly allocated funds, 86% came from European Union institutions.

The UK, France and Germany met last week to call for further action to support Ukraine. “We are ready to move towards using the value of frozen Russian sovereign assets in a coordinated way to support the Ukrainian armed forces and thus bring Russia to the negotiating table,” they said in a statement.