The European Union is considering a new financial instrument that will allow more efficient to use profits from frozen Russian state assets, most of which are placed in the European Belgium accounts. It is about almost € 200 billion that currently generate profit from safe investment through the National Bank of Belgium.
According to Politico , Brussels develops a plan for creating a special fund with a higher investment risk. Its task is to invest frozen assets into more profitable financial instruments without touching the principal. Thus, the EU will significantly increase the volume of financial assistance to Ukraine without the legal consequences related to the confiscation of Russian funds.
In 2024, these assets have already brought the EU more than € 4 billion, which were aimed at servicing the G7 loan for Ukraine. According to the plan, some of the future profits will also finance the needs of Kiev, in particular as part of the SAFE defense initiative, which provides for the purchase of weapons for the Armed Forces.
Informal discussions of EU finance ministers are expected to be held on June 19 in Luxembourg. Participants will also consider the proposals of the Polish presidency aimed at the further use of the assets of the Russian Federation.
The key to the veto from Hungary, which has repeatedly blocked joint decisions to support Ukraine, remains key. Brussels does not currently have a final legal mechanism that would guarantee protection against such actions and at the same time does not violate international law.
Despite the potential risks of unprofitable investments and criticism by individual political forces, the EU recognizes that without finding new sources of financing Ukraine's support in 2026 can be significantly reduced.
