The European Union is considering more aggressive measures to confiscate frozen assets belonging to Russia’s central bank to provide financial and military support to Ukraine. With concerns that the United States may reduce its assistance, European officials are exploring ways to use these assets as collateral through an International Claims Commission. If Moscow refuses to pay compensation to Ukraine, the frozen funds could be seized.
Discussions among EU officials include the possibility of offsetting the value of these confiscated assets against the damages Russia is expected to pay as part of any future peace settlement. The estimated total of Russian central bank assets frozen by the EU, G7 countries and Australia stands at approximately $280 billion. Additionally, $58 billion in Russian private assets—including luxury properties, yachts and private jets—have been frozen under Western sanctions. Most of these assets are held in securities and cash through the Belgian clearing house Euroclear.
European leaders are under growing pressure to act, especially after former United States President Donald Trump’s recent statements criticising President Volodymyr Zelensky. Trump accused Zelensky of being an unelected leader and suggested that Ukraine was responsible for the Russian invasion. With threats of reduced American aid, Zelensky has called on European allies to increase their support.
The European Commission has not yet issued an official response regarding the potential confiscation of Russian assets. However, EU economic and financial officials, including Valdis Dombrovskis and Maria Luis Albuquerque, believe that all possible options should be explored.
One proposal under discussion involves obliging EU member states to seize sovereign Russian assets as compensation for the destruction of Ukraine’s energy infrastructure. Legal experts are reviewing whether rulings by the International Criminal Court or the scale of Russia’s attacks could justify asset seizures under national criminal laws.
Some EU countries, including Germany and France, have expressed concerns over the economic and legal implications of outright asset confiscation. These countries worry about how such measures might impact the global role of the euro and the stability of financial markets. The European Central Bank has also voiced its reservations about the proposals.
The situation is further complicated by the fact that the G7 has already utilised profits from immobilised Russian assets to secure a $50 billion loan for Ukraine. Despite this, discussions on forming an International Claims Commission are set to begin on March 24, with further discussions planned among foreign ministers.
The commission’s primary role will be to assess damage claims and determine how much Russia owes Ukraine in reparations. European Commission President Ursula von der Leyen has strongly supported this initiative, stating that justice must include financial compensation. She has made it clear that Russia must be held accountable for its aggression and that it must pay for the damage it has caused.
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