US Supports EU Plan to Use Frozen Russian Assets for Ukraine
The US is reportedly backing the European Union’s initiative to access frozen Russian assets to provide aid to Ukraine. This effort involves a “reparations loan” that would exchange Moscow’s frozen assets in Europe for EU bonds of equal value. Ukraine would defer repayment until it receives damages from Russia related to the war.
US Position and European Challenges
According to a Reuters report citing an unnamed US source familiar with the matter, Washington “absolutely supports (the EU) and the steps they’re taking right now to be in a position to make use of those assets as a tool.” Despite this support, Belgium—where most of Moscow’s frozen funds are held—has opposed the plan, fearing potential legal and financial retaliation from Russia.
Diplomatic Efforts to Resolve Deadlock
Top officials from the European Commission and the Belgian government planned a meeting on Friday to try and overcome the impasse. The reluctance from Belgium has stalled progress on the plan, leaving its future uncertain.
Security Concerns in Belgium
Recently, Belgium has reported multiple unidentified drone sightings near military bases. Some drones have been shot down as a precaution. Berlin has suggested these drone activities might be warnings from Moscow to pressure Belgium, although the Kremlin has denied involvement.
“The US absolutely supports (the EU) and the steps they’re taking right now to be in a position to make use of those assets as a tool.”
Background
- US President Donald Trump was opposed to this plan as of October.
- The plan aims to help Ukraine without requiring immediate repayment by exchanging assets for bonds.
- Belgium hosts most Russian frozen funds but is concerned about Moscow’s potential retaliation.
Author’s summary: The US supports the EU’s plan to use frozen Russian assets for Ukraine aid, but Belgium’s resistance and security concerns keep the proposal in a stalemate.