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Ursula von der Leyen Revives Proposal to Use Russian Assets to Fund Ukraine's Defense

Ursula von der Leyen has revived the proposal to use the immobilised assets of the Russian Central Bank to support Ukraine's financial needs. The European Commission president proposed tapping into these assets to raise up to €210 billion in assistance for Kyiv without burdening public coffers. While the plan was previously rejected due to legal and political risks, a joint letter from Sweden, the Netherlands, Spain, and Poland now asks the Commission to explore new options for using the funds. Ukrainian President Volodymyr Zelenskyy has warned of a growing $27 billion shortfall in the Ministry of Defence. He suggested that the EU either frontload a share of the €90 billion loan or tap into the Russian assets to plug the gap. Proponents of the plan argue that the aggressor should pay for the consequences of its aggression. However, some member states remain cautious, fearing that using the assets might be perceived as confiscation, which could be illegal under international law. The administration of the European Commission continues to weigh the diplomatic and financial risks of this move.

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