Euroclear Assets as Collateral
One option involves using funds held at the Belgian central securities depository Euroclear. Brussels could purchase zero-interest EU bonds, using the Russian assets as backing. Sources note that approximately €170 billion of the original €194 billion has already matured and now exists as cash balances on Euroclear’s accounts. The capital raised could then be transferred to Ukraine in tranches.
Special Financing Instrument
The second option under discussion is the creation of a special financing instrument designed to manage these funds. This would allow non-EU states to participate in Ukraine’s recovery program, broadening international support beyond the bloc.
“Efforts to unlock these frozen funds could change Ukraine’s financial outlook, but they may also escalate confrontation with Moscow,” one source noted.
Decision Expected in October
According to Bloomberg, the EU may reach a decision on transferring frozen Russian assets to Ukraine by October 23. Officials expect the matter to be raised by several EU finance ministers at a meeting in Copenhagen this week, and again by EU leaders later in October.
Germany Alters Its Position
Germany has shifted its stance and now supports transferring income from frozen Russian assets to Ukraine. Previously, German authorities had approached the issue cautiously, citing the need to protect Europe’s financial hub and the principle of sovereign immunity. However, Berlin changed its position amid concerns that a potential weakening of US support for Ukraine could place greater financial strain on Germany’s economy.
