US presses EU states to reject Plan using frozen Russian assets for Ukraine — Bloomberg
The United States has been lobbying several EU member states to resist the bloc’s plan to use frozen Russian central bank assets as collateral for a large loan to Ukraine, Bloomberg reports.
According to the diplomats, who spoke on condition of anonymity, US officials argued during recent discussions that the immobilized Russian funds “are needed to help secure a peace deal between Kyiv and Moscow and should not be used to prolong the war.”
This week, the European Commission proposed channeling the frozen assets to back a €90 billion loan intended to support Ukraine’s economic and military needs over the next two years. About €210 billion in Russian central bank reserves are currently frozen in the EU, and more could potentially be used from 2028 onward.
The debate comes as Ukraine faces a financial crunch early next year, while the Trump administration has halted most US aid, placing greater pressure on Europe. Washington has been examining the Russian assets as an element of its own push for peace talks, suggesting they might finance postwar investments under a US-led framework.
The diplomats also said that the US’s 28-point peace plan—first circulated last month—has since been modified, yet Russian assets remain a key sticking point, alongside “the status of Ukrainian territories” and “robust security guarantees” for Kyiv.
European leaders insist that decisions on how to use the funds must remain in European hands, given that most of the assets are held on EU soil. “There is ‘no possibility of leaving the money we mobilize to the US,’” German Chancellor Friedrich Merz said on Thursday. “The American government knows this, and this is also the German government’s negotiating position. This is also the consensus at the European level. There are absolutely no differences of opinion on this. This money must flow to Ukraine — it must help Ukraine.’”
Merz will travel to Brussels on 5 December for talks with Belgian Prime Minister Bart De Wever and European Commission President Ursula von der Leyen, seeking to overcome Belgian resistance to the plan. Belgium, where the majority of the frozen funds are held, argues it has not received adequate guarantees that it will not bear financial responsibility should Russia later sue to recover the assets. Brussels also warns of the risk of Russian retaliation against European companies.
“I don’t want to persuade him, but rather convince him,” Merz told reporters, referring to De Wever. “If we take this path, we will do so to help Ukraine, possibly for the next two to three years.”
Belgium’s position currently remains the main obstacle to approving the plan ahead of the upcoming EU summit. Hungary opposes the use of the assets, and Slovakia has said it will not back measures that include military support. A qualified majority would be sufficient to approve the proposals.
The European Commission has also floated the possibility of issuing joint EU debt if the frozen assets cannot be used, but Bloomberg reports that member states — including Germany — oppose the idea, and unanimity would be required.
The Commission’s separate proposal to use proceeds from the assets for a so-called “reparations loan” for Ukraine in 2026–2027 was immediately labeled “categorically unacceptable” by Belgium.
