The bulk of the assets, around EUR140 billion ($163 billion) are held in the Belgian clearing house Euroclear. Belgium vetoed the proposal last week, demanding a commitment of other EU member states to share the legal risks in case Moscow fights back in international courts.
According to Polito’s three diplomatic sources, most EU member states favor tapping the frozen assets. A less palatable approach—issuing joint EU bonds to continue funding Ukraine—is being developed to convince the reluctant governments to approve seizing Moscow’s cash.
The draft proposal, which the European Commission plans to circulate among EU capitals in the coming weeks, will include the debt-issuance mechanism, the diplomats said.
“What’s the point of discussing alternatives? This [asset seizure] is the only tool we have, and we must be honest about it,” one diplomat said.
Europe remains committed to ensuring Ukraine’s survival under the pressure of Russian aggression, with Hungary being the lone EU member to advocate halting aid to Kyiv, the report said. Member states are expected to reach a final decision on the financing mechanism by Dec. 18.
The report warned that Ukraine could face serious financial trouble by the end of Q1 2026 if it does not secure new support from Brussels.
On Oct. 22, Bloomberg wrote that with the “evaporated” U.S. aid to Ukraine, European leaders were becoming more determined to tap into frozen Russian assets. Brussels is weighing whether to use those assets directly to extend roughly EUR140 billion in new loans to Kyiv.