The European Union is actively seeking new financial resources for Ukraine by utilizing frozen Russian assets. The goal is to transfer 200 billion euros into a riskier investment fund that could yield higher returns.

This information comes from Politico, citing its own sources.

EU's Plans to Secure More Funds for Ukraine from Frozen Russian Assets

Some EU countries, such as Germany and Italy, express concerns about this approach due to potential financial and legal complications. However, the EU hopes that using only the interest from these assets will help avoid accusations of violating international law.

One option being considered by EU officials is to transfer assets from the Belgian financial institution Euroclear, where most of the frozen funds are currently held, into a specially created fund managed by the EU.

As reported by Politico, the advantage of this fund lies in its ability to invest assets in riskier projects that could potentially yield significantly higher profits for Ukraine. However, it remains unclear what specific investments may be considered.

According to current regulations, Euroclear is obligated to invest assets, many of which have already been converted to cash, in the Belgian central bank, where the returns are minimal due to the risk-free nature of the investment.

Proponents of the new fund argue that the EU should generate more profits from Russian state funds to maintain long-term support for Ukraine, especially given the prolonged peace negotiations with Russia.

Another potential benefit of this approach is that the new fund could protect assets from the risk of Hungary vetoing the extension of sanctions, which could effectively return these funds to Russia.

According to two sources, in recent weeks, the European Commission has held unofficial discussions with countries like France, Germany, Italy, and Estonia to find a legal way to keep the assets frozen, even if Hungary blocks the extension of sanctions. However, no final decision has been reached yet.

Critics warn that if the new fund's investments fail, taxpayers in EU countries may have to cover potential losses.

The EU is seeking unconventional financial solutions, as its current budget of 1.2 trillion euros is already overstretched, and the new multiannual financial plan will not take effect until 2028.

“Finding money within the current budget will be very challenging,” noted a diplomat in a comment to the publication.

Moreover, due to economic constraints and the need for unanimous agreement to replenish the budget, officials doubt that this will be possible, especially as Hungary is likely to oppose such a move.