US ‘pressuring’ EU not to use frozen Russian assets for Kyiv, says senior Ukraine official

Summary

• Zelensky will visit Brussels on December 18 to urge EU nations to use frozen Russian assets for Ukraine.
• The EU plan to use €90 billion in frozen assets faces opposition from some countries fearing Russian retaliation.
• The US is reportedly pressuring the EU to abandon the plan, viewing the assets as a bargaining chip with Moscow.

KYIV - President Volodymyr Zelensky will be in Brussels on Dec 18 to convince European partners to use frozen Russian assets to support Ukraine, despite Washington pressuring EU countries against the plan, a Ukrainian official told AFP.

The European Union has laid out a plan to use the frozen assets
to harness €90 billion (S$130 billion) for a loan to help Ukraine repel Moscow’s forces, with the money to be paid back by any eventual Russian reparations to Ukraine.

“The US administration is pressuring European countries to abandon the idea of using Russian assets to support Ukraine,” a senior Ukrainian official said on Dec 17.

The plan has the strong backing of many member states, including Germany, but has drawn opposition from others, including Belgium
– home to international deposit organisation Euroclear, which holds most of the assets – whose leaders fear Russian reprisals.

The Ukrainian official said that seven countries so far opposed the plan.

Mr Zelensky “is going to Brussels to motivate European countries to adopt this decision” and tap the frozen assets, the source said.

Belgian Prime Minister Bart De Wever has been in the spotlight over his opposition to using Russian assets for Ukraine, but there had been speculation that US President Donald Trump’s administration was also weighing in on the debate.

Washington appears to view the assets as a key bargaining chip and has looked to tempt Moscow to play ball by dangling the prospect it could get back some of the cash.

A US official, speaking on condition of anonymity, told AFP on Dec 17 that the Europeans were “quietly asking us to intervene on this matter as they do not want to be publicly against it”.

“They are afraid of the long-term damage it will do to long-term investments in their system and the credibility of their institutions,” they added.

A previous version of Mr Trump’s plan to end the war also provided for Washington to use some frozen Russian assets for a US-led reconstruction of the war-torn country.

Around €200 billion in Russian central bank assets were frozen over Moscow’s February 2022 invasion of Ukraine.

White House deputy press secretary Anna Kelly said: “Both the Ukrainians and the Russians have clearly stated positions regarding the frozen assets, and our only role is to facilitate a back-and-forth that can ultimately result in a deal.” AFP