Ukraine submits EU proposal for mechanism to channel frozen Russian assets, citing growing wartime deficit
Ukraine's Foreign Ministry says the government has sent the EU a proposal for a European-level mechanism that would channel frozen Russian Central Bank funds to cover Ukraine's growing budget deficit. Spokesperson Georgiy Tykhyi presented the idea at an MFA briefing as Ukraine seeks to break a deadlock, with Belgium continuing to voice objections and several EU member states already pushing the European Commission to reopen the debate.
Key points
- Ukraine's Ministry of Finance has submitted a proposal to the EU for a mechanism to use frozen Russian assets for Ukraine's benefit.
- The proposal envisions a European-level mechanism with shared responsibility among EU governments, rather than a direct transfer of funds to Kyiv.
- Ukraine frames the plan as the "most obvious" way to address a budget deficit driven by intensified Russian shelling.
- Belgium, which holds the bulk of the Russian Central Bank's frozen funds, continues to express skepticism and previously warned Kyiv against revisiting the topic.
- Several European countries have asked the European Commission to resume discussion of using frozen Russian assets for Ukraine.
- EU chief diplomat Kaja Kallas said the discussion on frozen Russian assets would continue.
- Ukraine says it hopes a decision can be reached in the coming weeks.
Why it matters
Frozen Russian assets are central to Ukraine's effort to cover a growing wartime budget deficit without adding to national debt. Belgium, which holds most of the Russian Central Bank's frozen funds, is the main obstacle, and Ukraine's new proposal is explicitly framed to address Belgian concerns. Several EU countries have already asked the European Commission to reopen the debate, suggesting a shift in European appetite.
What happened
At an MFA briefing in response to a question from Yevropeiska Pravda, Foreign Ministry spokesperson Georgiy Tykhyi said Ukraine's government believes the EU can create a mechanism to use frozen Russian assets for Ukraine's benefit, and that the Ministry of Finance has already submitted a corresponding proposal to the European side. The proposal does not envision a simple transfer of funds to Ukraine, but rather a European-level mechanism to which the frozen funds could be entrusted, with the actual decision on using the money for Ukraine's defense, resilience and reconstruction made collectively, with shared responsibility among EU governments. Ukraine argues this collective-responsibility approach can address Belgium's concerns, given that the bulk of the Russian Central Bank's frozen funds are located there. Tykhyi said Ukraine's budget deficit is growing because of intensified Russian shelling and that the country needs the funds now. He said Ukraine hopes the issue can be unblocked and resolved in the coming weeks.
How Ukrainian sources describe it
Ukrainian-language media presented the proposal as a creative idea and a hopeful way to move the issue off the dead point in coming weeks. The coverage centers Russia's role as the aggressor state and emphasizes that the deficit is being driven by intensified Russian shelling, framing the use of immobilized aggressor-state funds as a justified response.
Where reporting differs
Belgium continues to express reservations about using frozen Russian assets and has previously rejected the idea of transferring them to Ukraine and warned Kyiv against returning to the topic. Ukraine argues that its new collective-responsibility mechanism can address those Belgian concerns and hopes for a decision within weeks.
Background
Belgian Foreign Minister Maxime Prévot visited Kyiv, where Ukrainian Foreign Minister Andriy Sybiha raised the frozen-assets issue. EU chief diplomat Kaja Kallas has said the discussion on frozen Russian assets will continue. Most of the Russian Central Bank's frozen funds are held in Belgium.