Photo: depositphotos
Washington is reportedly urging several European countries not to use frozen Russian assets to provide a loan to Ukraine, Bloomberg reported, citing European diplomatic sources. U.S. officials are warning their European counterparts that these funds should not be used to prolong the war, arguing instead that they should support a peaceful settlement between Russia and Ukraine. The State Department has not commented on the matter.
The original U.S. 28-point plan proposed using $100 billion of frozen Russian assets for Ukraine’s post-ceasefire reconstruction, with the remaining funds placed into a joint Russia-U.S. investment fund. In the revised version, this provision was omitted, Bloomberg notes.
European countries had suggested using nearly all frozen assets—over €200 billion—to provide a loan to Kyiv, repayable only if Moscow fulfills reparations obligations. Belgium, which holds the bulk of these frozen assets, opposed the plan, citing potential legal risks from Russian claims. While the EU offered guarantees, Belgian authorities deemed them insufficient.
The European Commission has proposed an alternative: using €90 billion of frozen Russian assets over the next two years to fund Ukraine’s economic and military needs.
German Chancellor Friedrich Merz is set to visit Belgium on Friday, December 5. Ahead of the trip, he stated: “There are no disagreements on this matter. These funds must go to Ukraine.”
The EU loan is intended to cover Ukraine’s budget deficit and war-related expenses. According to the 2026 budget, Ukraine faces a deficit of 1.9 trillion hryvnias ($44.8 billion), or 18% of GDP. The Economist estimates that over the next four years, Kyiv will require roughly $400 billion to counter Russia—nearly double the total European support provided since the invasion began.
U.S. efforts to block the use of frozen Russian assets come amid European concerns over Washington’s position on the peace plan. European leaders have held phone talks with President Zelensky, advising him not to accept Russian demands without clear U.S. security guarantees. Kyiv’s interlocutors expressed fears that the U.S. could “betray” Ukraine on territorial issues.
European leaders have issued a clear warning to President Zelensky: Ukraine must not agree to Russian demands without reliable security guarantees from the United States.
