Europe Eyes €200 Billion in Frozen Russian Assets to Back Ukraine Ceasefire Plan

The largest European nations are exploring the possibility of confiscating more than €200 billion in frozen Russian assets as they draft a potential ceasefire agreement for Ukraine, Financial Times reported on March 3.

France and Germany, long opposed to full-scale asset seizures within the EU, are now discussing potential ways to utilize these funds with the UK and other nations.

According to three sources familiar with the negotiations, French officials have proposed seizing the assets if Moscow violates any future ceasefire agreement in Ukraine. This measure is part of broader efforts to provide Kyiv with security guarantees after the war.

Supporters of the ceasefire proposal argue that such a mechanism would force Russia to comply with any deal and strengthen Ukraine’s position.

These negotiations are unfolding amid a flurry of European diplomatic efforts, spearheaded by France and the UK, to develop a peace plan for Ukraine. The urgency has intensified following U.S. President Donald Trump’s decision to pursue direct negotiations with Moscow to end the war.

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War in Ukraine

European Leaders Push to Seize Russia’s Frozen Billions for Ukraine. Why Now?

Feb 21, 2025 20:22

Since 2022, G7 allies have frozen approximately $314.5 billion in Russian Central Bank assets in response to Moscow’s full-scale invasion of Ukraine.

The majority of these funds—around $199 billion—are held in Belgium’s Euroclear, the world’s largest securities depository. Smaller amounts are stored in France, the UK, Japan, Switzerland, and the U.S.

Currently, only the interest generated from these assets—mostly cash and government bonds—is being used to help cover G7 loans to Ukraine worth $50 billion.

Earlier, reports emerged that several European Union member states, along with European Commission President Ursula von der Leyen, were opposing the transfer of Russia’s $300 billion in frozen assets to Ukraine.