Ukraine urges EU to revisit frozen Russian asset plan

DUBLIN — Ukraine wants European countries to reopen the debate over frozen Russian state assets, suggesting a partial disbursement and broader guarantees could help break the deadlock with Belgium, which vetoed the plan in December.

Ukrainian Deputy Prime Minister Vsevolod Chentsov said the country was discussing several options with European partners to cover gaps in its defense and civilian budgets. Front-loading part of the EU’s €90 billion loan for Ukraine could help, he said, but would not be the only solution.

“We are looking also to the opportunities in the EU and we suggest, in particular, the idea of the frozen assets,” Chentsov said on the sidelines of an informal meeting of European affairs ministers in Dublin on Friday. “It’s a smart way to generate money and cover the debt.”

Using Russia's immobilized state assets to help fund Ukraine returned to the EU agenda after the Netherlands, Poland, Spain and Sweden last month called on the European Commission to explore “new options” for unlocking them.

More than €200 billion in Russian central-bank assets are immobilized across the EU, with most held by Belgian-based financial depository Euroclear. The Belgian government has resisted proposals to use the funds, citing the potential legal and financial risks it could face in the event of Russian retaliation or litigation.

Kyiv’s renewed appeal reflects the growing pressure to find additional money for Ukraine, with the country facing a substantial budget shortfall and Russia's full-scale invasion in its fifth year.

The EU and Ukraine "need to consider other options, to consider, say, different figures as a first step" to get at least some of the Russian assets released, Chentsov said in response to a question from POLITICO about how Belgium might change its mind.

Europe also needs new ideas about "how to guarantee this instrument," he added. "Maybe not only EU, but other players can step in and help to answer the concerns of Belgium. So it's important to start working again on the issue and look for the solution.

"I'm sure that if we want to find a solution, we will find a solution," he added.