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The European Commission is preparing a legislative initiative that would unlock frozen Russian state assets to fund reparations for Ukraine, with an estimated value of up to €140 billion, Bloomberg reports, citing sources close to the process.
According to the insiders, the document could be published in the coming days, marking one of the most ambitious legal steps by the EU since the start of Russia’s full-scale invasion, UATV English reports.
European Commission President Ursula von der Leyen has repeatedly stressed that Russia must pay for the destruction caused by its aggression, and that frozen assets represent a legitimate mechanism to ensure accountability.
“Russia must pay for the devastation it has brought. We will make sure Ukraine receives sustainable financing for reconstruction,”
— von der Leyen previously stated.
The upcoming proposal is expected to outline legal pathways for transferring revenues from immobilized Russian assets — or potentially the assets themselves — toward a Ukraine reconstruction fund, while addressing concerns voiced by several member states regarding financial risks and precedents in international law.
The initiative comes amid ongoing discussions between EU members on how to balance punitive measures against Moscow with the protection of European financial institutions, many of which hold Russian state reserves or related assets.
As reported earlier, the EU has already endorsed using profits generated by Russian frozen assets, but the new draft would significantly broaden the legal framework, potentially allowing direct seizure.
