Four EU states urge Brussels to unlock frozen Russian assets for Ukraine

Sweden, the Netherlands, Spain, and Poland are jointly urging the European Commission to restart work on using more than €200 billion in frozen Russian central bank assets to fund Ukraine, according to a report by the Financial Times published on Thursday.reuters

A letter from the four countries, dated August 27, calls on Brussels to explore new legal and technical mechanisms that could overcome Belgium's veto, which blocked an earlier proposal in December 2025. The Kyiv Independent, which obtained a draft of the letter on August 26, reported that it requests EU foreign ministers hold an initial discussion at an informal meeting in Ireland on September 1–2.euromaidanpress+2

Growing Budget Gap

The push comes as EU capitals grow increasingly concerned that Ukraine will need additional funding beyond the €90 billion loan approved in April 2026, which was designed to cover two-thirds of Kyiv's financial needs through the end of 2027. President Volodymyr Zelensky called for more financial support on August 24, and Swedish Foreign Minister Maria Malmer Stenergard told the Financial Times that the loan "is a manifestation of the EU's commitment to support Ukraine, but it is clearly not enough".pravda+1

"Now is the time to start a new discussion about how we can make further use of Russia's frozen assets for Ukraine's, and our, benefit," Stenergard said.pravda

Belgium's Concerns Persist

The initiative faces familiar obstacles. Belgium, where the majority of the frozen assets are held via Euroclear, blocked the earlier proposal over fears of Russian legal retaliation and broader risks to financial markets. Belgian Foreign Minister Maxime Prévot said during a visit to Kyiv on August 18 that Belgium needs guarantees it would not bear the costs alone should Russia successfully challenge the decision in court.euromaidanpress+1

"Nothing has changed since the debate and disaster last time," one person familiar with the matter told the Financial Times.pravda

The coalition's letter asks the Commission to ensure that risks would rest with all EU member states, with no single country bearing a disproportionate burden. EU rules already channel profits from the frozen assets to Ukraine — totaling €8 billion to date — primarily to help repay EU and G7 loans, but the four states want to go further by tapping the principal itself.globalbankingandfinance+1