There are plans to transfer Russia's frozen funds to a new EU entity
Former high-ranking officials from Germany, France, and the United States have called on the European Union to transfer frozen Russian assets from the Belgian depository Euroclear to the management of a new EU entity. In their view, this would allow Russia’s funds to be used to support Ukraine while simultaneously alleviating some of the risks for Belgium.
In late 2025, Belgium refused to transfer frozen assets of the Central Bank of Russia, totaling approximately 210 billion euros, to Ukraine. At that time, Moscow warned of the consequences for anyone who attempted to dispose of Russian funds.
Instead of transferring the assets themselves, the European Union approved a 90 billion euro loan for Ukraine for 2026–2027. According to the FAZ, the interest on this loan is to be financed by EU citizens.
Now, three former officials are proposing an alternative. They believe that the Russian assets should be transferred from Euroclear to a new EU administrator. They are: former German Defense Minister and former CDU leader Annegret Kramp-Karrenbauer, former French Minister for European Affairs Nathalie Loiseau, and Dalip Singh—a former deputy national security adviser to the U.S. and sanctions expert during President Joe Biden’s administration.
In a joint statement, they urge the EU to act quickly. “The European Union must immediately transfer the frozen funds of the Central Bank of Russia to the new EU administrator. Then Belgium will no longer have to fear ‘Russian coercion,’” the statement reads.
Why the authors of the proposal believe the timing is right
The former officials cite several reasons why the EU should make this decision now. First, they see a sort of “window of opportunity.” In their view, the war has reached a stalemate, Russian oil refineries are under attack, and the political situation in Europe has changed. In particular, they mention former Hungarian Prime Minister Viktor Orbán, whom they consider one of the main opponents of the EU’s tough policy toward Russia.
The second reason is that Russian money could strengthen Ukraine’s position in future negotiations. Kramp-Karrenbauer believes that transferring assets to Kyiv could send a signal to Vladimir Putin: continuing the war in the hope that Ukraine and its allies will run out of money will not work. “If the EU transfers Russian assets to Kyiv now, Putin will realize that continuing in the same vein until Ukraine and its allies run out of money is a lost cause. This could increase his willingness to agree to a ceasefire,” she explained.
The third reason is Ukraine’s future financial needs. According to the authors of the proposal, the 90 billion euros in aid earmarked for 2026–2027 will eventually run out. If a new source of funding is not found by then, Russia could find itself in a more advantageous position.
Another factor is the upcoming presidential election in France. Former officials fear that after next year’s election, politicians who are less supportive of Ukraine could come to power. Among the potential risks, they mention Marine Le Pen. “There is a danger that France may cease to be one of Ukraine’s most important allies after Macron,” said Kramp-Karrenbauer.
What They Fear About Trump
The authors of the proposal also draw attention to the position of the U.S. and President Donald Trump. The article mentions an unofficial 28-point “peace plan” which, according to the publication, negotiators may have been discussing in the fall of 2025.
Point 14 of the plan reportedly addressed the possible use of $100 billion from frozen Russian assets for Ukraine’s reconstruction. It was envisaged that the U.S. would oversee this process, and half of the investment profits could go to the American side. The remaining funds were to be directed toward Russian-American projects.
Kramp-Karrenbauer believes that transferring the assets to EU control could prevent such a scenario. “Some say that Trump wants to use this money to finance deals between the U.S. and Russia. If, on the other hand, the EU takes control of them now, they will be protected from access by Putin or Trump,” she explained. In her view, this would also strengthen the positions of Ukraine and European countries in future negotiations to end the war.
What Does Germany Have to Do With It?
There is another argument—Germany’s domestic politics. The authors of the proposal believe that using Russian funds to support Ukraine’s defense would help ease the burden on European countries’ budgets.
In particular, this could weaken the arguments of the far-right party “Alternative for Germany,” which opposes German taxpayers funding aid to Ukraine. Thus, proponents of the idea are suggesting not simply transferring the frozen Russian funds to Ukraine, but first changing the structure that manages them. In their view, this could alleviate some of the risks for Belgium and give the EU more control over Russia’s assets. The Frankfurter Allgemeine Zeitung (FAZ) reports on this.
On Monday, the UN Security Council will hold an informal meeting dedicated to Ukrainians held captive by Russia. Participants will discuss the treatment of prisoners of war and civilians, violations of international law, and the recruitment of foreigners into the Russian army.
