The European Commission is exploring ways to channel more than €200 billion in frozen Russian assets into rebuilding Ukraine after the war, Politico reports.
Such a mechanism is viewed as an alternative if Russia refuses to pay reparations for the destruction caused by its invasion. European officials see the potential use of these funds as a form of “punishment” for Moscow should it decline to take responsibility.
At the same time, questions remain about the measure’s effectiveness. According to estimates by the Ukrainian government, the country’s war losses amount to several times more than the value of the frozen Russian assets. In that context, some observers argue that the plan may fall short of true accountability for Russia.
The proposal is expected to be discussed on Saturday, Aug. 30, at a meeting of EU finance ministers in Copenhagen.
Since the start of Russia’s full-scale invasion in 2022, more than €300 billion in Russian assets have been frozen across the Eurozone and the United Kingdom, with the largest share held in Belgium.