EU Eyes Bigger Returns from Frozen Russian Assets to Sustain Ukraine Aid
In a bold financial maneuver designed to sidestep legal and political constraints, the EU is weighing plans to channel nearly €200 billion in frozen Russian assets into higher-yield investments, aiming to significantly boost support for Ukraine.
The Gaze reports on this with reference to Politico.
According to multiple EU officials briefed on the matter, the European Commission is considering the creation of a new investment vehicle – a “special purpose fund,” that would assume control of the immobilized Russian assets currently held by Euroclear in Belgium.
The fund would target riskier but more lucrative investments, with the generated profits directed toward Ukraine’s war-stricken economy.
What sets the EU plan apart is its attempt to strike a legal and diplomatic balance: only the proceeds from investments would be used to assist Ukraine, while the principal, the Russian sovereign capital, would remain untouched.
This distinction is critical for maintaining legal defensibility under international law and for placating member states such as Germany and Italy, which remain firmly opposed to outright asset confiscation.
The EU has already been leveraging interest from the frozen funds to repay its portion of a G7 loan to Ukraine.
In 2024 alone, investments managed by Euroclear under strict, low-risk guidelines yielded €4 billion.
The new approach would amplify those returns by venturing beyond the ultra-conservative framework currently in place, which limits Euroclear to investing primarily through the Belgian central bank.
Supporters of the plan argue that this new structure could provide a stable, long-term revenue stream for Kyiv without crossing legal red lines or inviting accusations of expropriation.
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