Who stands where? – Firstpost

A high‑stakes debate is unfolding across the European Union over whether to use €210 billion ($246.25 billion) in frozen Russian assets to help pay for Ukraine’s reconstruction, and member states are sharply divided on the best approach.

Most of the funds come from Russian central bank reserves immobilised by EU sanctions after Moscow’s full‑scale invasion of Ukraine in 2022. Now, as Kyiv’s financial needs mount and its war effort continues, Brussels is scrambling to find new ways to sustain support, and using those frozen assets, as reported by the Associated Press.

Supporters say Russia should bear the cost

Ukraine’s president, Volodymyr Zelenskyy, has been a vocal supporter of tapping the funds.

At a recent press conference with Dutch Prime Minister Dick Schoof, he said Ukraine expects to use the frozen reserves to cover urgent needs in the coming years. “Of course, we would very much like to use this to rebuild… It is fair that the Russians should pay for the destruction,” he said, furthering Kyiv’s argument that Russia, not European taxpayers, should foot the bill for reconstruction.

Several EU leaders also back the idea.

Nordic prime ministers, for example, have stressed that using Russia’s frozen assets is the most viable way forward. Danish Prime Minister Mette Frederiksen, as quoted by Euronews, said the proposal is the only realistic option and that “I think, to be honest, it’s the only way forward and I really like the idea that Russia pays for the damages they have done and committed in Ukraine.”

But not all EU capitals are comfortable with the plan.

Belgian Prime Minister Bart De Wever, whose country holds most of the frozen reserves through the Euroclear financial institution, has demanded legal certainty and shared financial risk before Brussels moves ahead. “I want the maximum of legal certainty. I want solidarity,” he said in October, as quoted by Euronews, comparing the funds to a “chicken” that shouldn’t be eaten without knowing the consequences.

Italy has also expressed concern, as per a Reuters report. Ahead of a key summit, Italian Prime Minister Giorgia Meloni called the idea of using frozen assets “far from easy,” warning that any plan must have a solid legal basis and shouldn’t impose disproportionate liabilities on EU budgets.

Other leaders, including those in Germany and France, have pushed for caution too.

Moscow takes the legal route

The debate has already triggered legal retaliation from Moscow. Russia’s central bank is suing Euroclear in a Russian court, claiming the frozen assets were wrongfully denied access. Brussels, meanwhile, according to the Associated Press, insists the funds remain frozen and that any future use would adhere to international law.

At the same time, opposition within the EU has political dimensions. Hungary’s Prime Minister Viktor Orbán has threatened to use his bloc leverage to block related decisions, arguing that such steps could strain member‑state finances.

Despite the divisions at the top, public opinion in many European countries still favours supporting Ukraine financially. A new YouGov survey show majorities in several EU states back using Russian funds in some form to help Kyiv. But the deep legal and political disagreements mean the final decision at an upcoming EU summit remains uncertain.