Bloomberg: US tried to persuade EU against using Russian assets for Ukraine

Bloomberg has learnt from European diplomats that the United States lobbied several EU nations to block plans to tap frozen Russian central bank assets to finance a substantial loan to Ukraine.

Source: European Pravda, citing Bloomberg

Quote from Bloomberg: "US officials argued to member states that the assets are needed to help secure a peace deal between Kyiv and Moscow and should not be used to prolong the war, said the diplomats, who spoke on the condition of anonymity."

Details: This week, the EU proposed using frozen Russian assets to secure a €90 billion loan to cover Ukraine's economic and military needs over the next two years. The EU holds roughly €210 billion in frozen Russian assets.

The discussions come at a critical moment for Ukraine, as the US is pressuring Kyiv to accept a potentially unequal peace deal with Russia. The country also faces the risk of running out of funds early next year.

Washington has also considered using the frozen Russian assets in its plans to enable peace talks with Moscow, suggesting they could help finance US-led post-war investments.

The 28-point US "peace plan" has been revised since its unveiling last month, but frozen assets remain a major sticking point, along with the status of Ukrainian territories and the provision of reliable security guarantees to Kyiv, according to some negotiators.

European leaders maintain that the use of frozen Russian assets is a European matter, since the funds are largely held within the EU.

Background:

• On 3 December, European Commission President Ursula von der Leyen presented two proposals for financing Ukraine in 2026-2027, including one that suggests using funds from Russian assets frozen in the EU to provide Ukraine with a "reparations loan".
• Even before the new proposal was announced, Belgium, which holds most of the Russian assets in the EU and fears the legal fallout from the decision, called it categorically unacceptable.
• On Friday, German Chancellor Friedrich Merz postponed his planned trip to Oslo and will instead travel to Brussels for talks on Russia's frozen assets.

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