The European Union is exploring ways to use frozen Russian assets to finance Ukraine during the war and after it ends. There is an initiative to transfer these assets from the jurisdiction of individual countries to the management of a special EU instrument, which should reduce the risks for the Euroclear depository.
Political analyst Hugo Dixon announced this during an event at the EPC think tank in Brussels dedicated to Ukraine’s financing. He noted that such a decision would help avoid potential lawsuits and retaliatory measures from Russia.
Under the initiative, the Russian Central Bank’s assets are planned to be transferred not only from Euroclear but also from Luxembourg-based Clearstream and other European depositories. The EU will assume liability toward Russia while preserving the Russian Federation’s formal ownership of these assets.
In the event of Russian lawsuits, the EU—rather than individual countries or depositories—will be liable for the assets and obligations. Brussels is also expected to provide legal and financial protection to Euroclear and other depositories.
Dixon emphasized that the money will not be transferred to Ukraine immediately, as the legal and financial framework for using Russian funds must first be established. The initiative has already received support from several EU countries and some members of the European Parliament.
The authors also propose involving the United Kingdom, Canada, and Japan in this scheme. Ukraine, for its part, has reported a deficit of $27 billion this year, and next year’s deficit could be even larger, although this information has not yet been confirmed by international donors.
