US pressures EU not to use frozen Russian assets, here's what Brussels is considering

The confrontation in Brussels over how frozen Russian funds will be used appears to be entering a new phase.

The US is trying to prevent Europe from using them to finance Ukraine.

Bloomberg cites European diplomats, according to whom Washington has called on European capitals, asking them to "freeze" the plan to provide a large loan to Kiev, which would be covered by Russian central bank assets that have been frozen in Europe.

The US considers the funds a critical sticking point in potential peace negotiations between Moscow and Kiev and expresses concern that channeling them into Ukraine's war effort could prolong the conflict.

However, in the current period, the European Union has presented a proposal to use these reserves as a guarantee for a loan of up to 90 billion euros, with the aim of covering Ukraine's economic and defense needs until 2027.

Based on estimates, approximately 210 billion euros of Russian assets are currently in European jurisdiction, while the scope of their use may be further expanded after 2028.

The State Department did not make an official comment on the information.

The US intervention comes as Washington is putting increasing pressure on Kiev to reach a peace deal, even on difficult terms, as the Trump administration has sharply reduced military and economic support for Ukraine, shifting its focus to Europe.

The frozen Russian assets are also part of a 28-point US proposal for peace talks. Washington is leaving open the possibility of their future use for post-war investments under US coordination.

European governments insist that the management of the funds is the exclusive responsibility of the EU. German Chancellor Friedrich Merz made it clear that “there is no possibility of transferring the money to the US,” underlining that the common European position is that the funds should be directed to Ukraine.

However, the proposal is facing resistance. Belgium, which is also home to a large amount of Russian capital, is expressing strong reservations, fearing both the financial burden in the event of future legal claims from Russia and the risk of Russian retaliation against European interests.

The German Chancellor is expected to discuss the issue today in Brussels with Belgian Prime Minister and Commission President Ursula von der Leyen, in an attempt to overcome the opposition ahead of an EU summit at the end of the month.

The European Commission is considering providing guarantees through the European budget or member states as an alternative. The idea of ​​issuing joint European debt is also on the table, a proposal that is being rejected by countries such as Germany.

At the same time, Hungary is completely against the use of Russian assets, while Slovakia is blocking any measures related to military support for Ukraine.

However, the plan requires a qualified majority rather than unanimity, which leaves open the possibility of its approval.