Ukraine urges transition from freezing to seizing Russian assets

December 15, 2024

By Ukraine

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Ukrainian Foreign Minister Andrii Sybiha has called for Western nations to move beyond freezing Russian assets to seizing them for Ukraine’s support, following a similar call from the RU’s top diplomat.

Approximately $325 billion worth of Russian assets have been frozen in Western countries since Russia’s full-scale invasion of Ukraine in 2022, with the EU holding more than two-thirds of the $300 billion in sovereign assets frozen by Western allies.

On 15 December, Sybiha wrote on X:

“When it comes to immobilized Russian assets, it is time to move from freezing to seizing—use not only profits, but also assets themselves, to support Ukraine’s defense, resilience, and recovery.”

His statement follows similar remarks from EU’s High Representative for Foreign Affairs and Security Kaja Kallas, who advocated for using billions in frozen Russian state funds to aid Ukraine. Kallas emphasized Ukraine’s legitimate claim for compensation and described the Russian assets held in the EU as “a tool to pressure Russia.”

90% of EU-held frozen assets are currently managed by Belgium-based financial services company Euroclear. These assets generate estimated annual profits between $2.6 billion and $3.2 billion, which are being directed toward arming Ukraine and financing its post-war reconstruction.

Earlier this month, Ukrainian FM Sybiha has already pushed for seizing Russian assets, mentioning on 3 December that “the use of immobilised Russian assets” was among the topics he discussed with Benjamin Haddad, Minister delegate for Europe of France, while on the next day he stressed to Spanish Foreign Minister José Manuel Albares “the need to fully use” Russia’s frozen funds.

$50 billion loan

The EU’s allocation of proceeds from Russia’s frozen assets is part of a broader initiative by the G7 major industrialized nations, finalized in October, to provide a $50 billion loan to Ukraine, backed by profits from Russian assets.

Multiple nations have committed to providing loans backed by frozen Russian assets. According to a G7 loan term sheet, the EU will provide 18.115 billion euros, Canada C$5 billion, Britain £2.26 billion, and Japan 471.9 billion yen. The UK and Japan reportedly announced sending their parts.

Approximately a week ago, the United States disbursed funds for the $20 billion loan, to be repaid using profits from frozen Russian assets.

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