The EU will push ahead with plans to use frozen Russian funds to aid Ukraine, despite US pushback

Russian President Vladimir Putin.

The European Union committed to move along with plans to tap Russia’s frozen funds with or without US support, Bloomberg reported.

“We will do whatever we can to support Ukraine, regardless of decisions in Washington,” Josep Borrell, vice president of the European Commission, told reporters on Thursday. “Ukraine needs to boost their defense capacities — and they need it now.”

Around $300 billion worth of Russian foreign reserves were locked by the West in 2022, shortly after Moscow launched its invasion of Ukraine. Since then, the US and its allies have left these assets untouched, but repercussion fears have eased as the war dragged on.

In June, the Group of Seven agreed in principle to provide Ukraine with a $50 billion loan, using profits accrued by Russian funds.

According to Bloomberg, US concerns have delayed this agreement. Before pressing ahead, Washington is seeking a firmer EU commitment that the bloc can renew sanctions on Russia.

The worry stems from the fact that Europe’s sanctions require an extension every six months, achieved through a unanimous vote among member states. At this time, opposition from Hungary makes this look unlikely.

To circumvent the issue, EU ministers are planning to soothe US fears with two possible plans: either the six-month interval period is lengthened, or the bloc applies an indefinite hold over the assets that is reviewed regularly.

The delays have frustrated Ukrainian leadership, as the country is struggling to halt Russia’s Eastern advance.

Meanwhile, the US has kept up pressure on the Kremlin in other ways. Last week, the Treasury and State Departments announced a fresh batch of sanctions on foreign entities helping Russia. The Treasury warned that secondary sanctions could target countries hosting Russian bank branches.