While Berlin and Paris had previously resisted full asset confiscation, they are now engaging in talks with European and G7 partners about potential mechanisms to use the funds.
"There are fears of negative consequences for the euro and the banking system," Polish Prime Minister Donald Tusk said on March 2.
The loan, which is part of the Group of Seven's (G7) Extraordinary Revenue Acceleration (ERA) credit initiative, was signed amid President Volodymyr Zelensky's visit to London to meet with U.K. Prime Minister Keir Starmer.
Europe has been left scrambling to find ways to boost defense spending and continue the flow of support to Ukraine after U.S. President Donald Trump made clear the continent won't be able to rely on Washington for its long-term security needs. The latest reports suggest that EU officials are
The European Union is discussing how to seize Russia’s frozen central bank assets to provide financial and military aid to Ukraine, as concerns grow that the United States may scale back its support.
Key developments on Feb. 21: * Russia wants to declare 'victory' over Ukraine on Feb. 24, Ukrainian intel claims * Zelensky is not 'important' to negotiations on ending war, Trump says * 'No appetite' for new Ukraine aid bill, US House speaker says * Trump's envoy Kellogg praises Zelensky as 'courageous leader' after talks
According to Reuters, one source familiar with Moscow discussions said Russia could agree to allocate up to two-thirds of frozen assets for Ukraine's reconstruction, provided accountability guarantees.
The EU must fund Ukraine with frozen Russian assets, strengthen borders, and boost defense spending, Polish Prime Minister Donald Tusk said on Feb. 20.
A draft law approved this week by the Russian government's legislative commission lays out the procedure for seizing foreign property in retaliation for freezing Russian assets abroad.
The U.S. Justice Department is shutting down a program that sanctioned Kremlin-linked oligarchs, launched in 2022, Attorney General Pam Bondi announced on Feb. 5.
Belgian clearing house Euroclear said in a statement on Feb. 5 that the second payment is expected to be made in March and should amount to approximately 2 billion euros.
The Justice Ministry has requested the Supreme Anti-Corruption Court to confiscate the assets of the Russian oil company Tatneft in Ukraine, Deputy Minister Iryna Bogatyk announced on Jan. 27.
The European Union will provide 35 billion euros ($36 billion) in financial assistance to Ukraine in 2025 through the G7 ERA credit initiative and the Ukraine Facility program, European Commission's vice-president and trade commissioner announced on Jan. 22.
The strategy reportedly aims to pressure Moscow by signaling the funds could only be reclaimed through negotiations with Ukraine.
Kyiv and Rome are discussing the possibility of purchasing Italian-made air defense systems and ammunition using profits from immobilized Russian assets, the Ukrainian Defense Ministry said on Jan. 11.
"This is the first tranche of funds from the European Union, secured through income from frozen Russian assets," Prime Minister Denys Shmyhal said.
President Volodymyr Zelensky previously offered U.S. President-elect Donald Trump for Ukraine to buy American weapons at the expense of $300 billion in frozen Russian assets, Zelensky revealed in an interview with American podcaster Lex Fridman published on Jan. 5.
The United States will provide Ukraine with $15 billion, backed by future revenues from frozen Russian assets, Ukrainian Prime Minister Denys Shmyhal announced on Dec. 30.
In a phone call with Japanese Prime Minister Shigeru Ishiba, Zelensky expressed his gratitude for Japan's previous aid to Ukraine, which has totaled $12 billion and "makes it possible to save thousands of lives."
This is the first tranche of the planned $20 billion that the U.S. intends to provide as part of the G7 initiative.
The Russian embassy in London criticized the U.K.'s plan to transfer more than two billion pounds ($2.5 billion) to Ukraine using frozen Russian assets, calling it a "fraudulent scheme."
Key developments on Dec. 20: * Russian An-72 military transport plane damaged in blast near Moscow, Ukraine's intel claims * Fire, casualties reported in Kyiv amid Russian missile attack * Ukraine charges Russian general with killing Reuters employee in Kramatorsk * Russia captures 'Uspenivka pocket,' Ukraine denies reports of failed breakout * Ukraine begins
The funding includes a $1 billion grant from the new $20 billion U.S. loan backed by frozen Russian assets. Another $1.05 billion is supported by the U.K. and Japan.
Key developments on Dec. 10: * US announces $20 billion loan for Ukraine as part of G7 initiative * Zelensky announces 'successful tests' of new Ukrainian missile * 70% of Ukrainians support 'West German' model for NATO accession, survey shows * Explosions heard in occupied Donetsk Oblast city, Russian proxies announce evacuation * Confusion over
The U.S. Treasury Department announced on Dec. 10 that it will provide $20 billion in loan assistance to Ukraine, marking its contribution to a broader $50 billion initiative supported by G7 countries.
U.S. Secretary of State Antony Blinken confirmed during a briefing that the transfer is part of a coordinated effort between the U.S. and EU to support Ukraine.
Ukraine's Finance Ministry and the EU signed a memorandum and an agreement to attract up to 35 billion euros ($36.7 billion) as part of the G7 loan, the ministry said on Dec. 4.
There are some $4-5 billion of frozen Russian assets in the U.S. and it will be up to President-elect Donald Trump to decide what to do with them when he takes office in January 2025. After Russia’s full-scale invasion of Ukraine, Western nations froze around $300 billion of
"Our aim is to begin disbursing the funds by the end of the year," G7 leaders announced on Oct. 25. The loan will support Ukraine's economic, defense, and reconstruction needs.
Daleep Singh, the White House deputy national security adviser on international economics, said that Joe Biden's administration intends to split the funds between helping the Ukrainian economy and the military.
G7 leaders will issue a joint statement in October saying that "Russia's sovereign assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine," according to the draft prepared by this year's chair, Italy.
The loan will be allocated to Ukraine's military spendings. Kyiv will be able to invest in key equipment to fight Russia, such as artillery, air defense, and wider equipment support.
