European Commission President Ursula von der Leyen has put forward a proposal that would allow Ukraine to borrow up to €210 billion using extraordinary legal means, backed by frozen Russian state assets, the Financial Times reports, as cited by Mandiner.
The move is aimed at circumventing the blocking ability of Hungarian Prime Minister Viktor Orbán and other leaders with veto power.
According to former EU legal director Jean-Claude Piris, although the proposal raises serious legal concerns, they consider it justified in a war situation.
Von der Leyen previously sent a letter to all member states seeking €135 billion to send to Ukraine. At the time, Hungarian Prime Minister Viktor Orbán called the letter “absurd,” especially as Ukrainian President Zelensky was, and still is, facing a $100 million corruption scandal.
In that letter, using Russian assets was also proposed, the route Brussels now seems intent on taking. In an X post, Orbán had noted that this would only bring “lengthy legal wrangling, a flood of lawsuits and the collapse of the euro.”
Back in September, Remix News wrote that German Chancellor Merz was pushing to unfreeze these assets, with Poland also piling on pressure.
Some $300 billion worth of Russian assets is currently frozen across the EU, with a whopping €210 billion held in cash and bonds by the Belgian clearing house Euroclear.
Belgian Prime Minister Bart de Wever has pushed back against tapping these funds, saying, it’s not as simple as politicians claim.
“When money owned by another country’s central bank is used by another country, it will have consequences,” he warned.
De Wever remains opposed to the plan, citing the financial and legal risks.
Several EU diplomats maintain that it is a last-ditch attempt to fund Ukraine and will face steep legal challenges.
