EU will not confiscate frozen Russian assets - DW
Photo: The EU will not confiscate frozen Russian assets (flickr)
The European Union will not confiscate Russia's frozen assets, as several countries have opposed the move, Deutsche Welle reports.
The text of the EU summit conclusions from March 20, obtained by a DW correspondent, indicates that the European Union has ended discussions on confiscating frozen Russian assets.
"According to EU legislation, Russia’s assets must remain immobilized until Russia ends its aggressive war against Ukraine and compensates it for the damages caused by this war," the text adopted by EU leaders states.
Some countries opposed the confiscation of Russian assets
Several EU countries opposed the confiscation of over €200 billion in Russian assets, citing several arguments, including:
- EU legislation,
- the risk of setting a precedent that could harm Europe's competitiveness in financial services,
- the need to support Ukraine using interest generated from these funds,
- and the idea that these assets serve as a bargaining chip in peace negotiations and leverage over Russia.
Ahead of the summit, one European diplomat noted that discussions were shifting toward the endgame in Ukraine, including potential peace negotiations, a ceasefire, and a peace agreement that could be signed within months or years. They emphasized that there was a growing recognition that retaining Russian assets might be more valuable than confiscating them without a clear plan for their use.
At the same time, the document emphasizes the EU's commitment to increasing pressure on Russia, including imposing additional sanctions and strengthening oversight of existing measures to weaken its ability to wage war against Ukraine.
Frozen Russian assets
Western countries froze Russian assets following Russia's invasion of Ukraine in February 2022.
The majority of these funds are held in Europe, with €183 billion frozen in the Euroclear depository in Belgium.
Currently, Ukraine receives financial assistance from the interest generated by these assets. As reported by RBC-Ukraine, the first tranches from frozen Russian assets were transferred to Ukraine by the European Union in January 2025.
Additionally, the UK provided Ukraine with nearly $1 billion, secured from the revenues of Russian assets.
Notably, over the past year, interest accrued on sanctioned Russian funds amounted to approximately €6.9 billion.
