EU Chief Considers Revisiting Plan to Take Frozen Russian Assets

RunWithRugs · 2026-03-16T16:22:39+00:00

The EU's foreign policy chief suggests revisiting the proposal to use frozen Russian assets for Ukraine's support after Hungary blocked a €90 billion loan. This plan was initially rejected due to member disagreements.

RunWithRugs

2026-03-16 16:22:39

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(MENAFN) EU foreign policy chief Kaja Kallas has suggested bringing back the previously rejected proposal to utilize frozen Russian assets to support Ukraine, following Hungary’s veto of a €90 billion ($106 billion) loan for Kiev on Monday.

Reports indicate that Western allies of Ukraine froze $300 billion in Russian central bank assets after the 2022 escalation of the conflict, with most held at the Belgian-based Euroclear depository.

In December, EU member states could not reach agreement on using these funds as collateral for a “reparations loan” for Ukraine due to objections from Belgium and others. Instead, the bloc opted to finance Kiev through shared debt, approving a €90 billion loan backed by the EU budget.

The plan was blocked by Hungary on Monday, citing Ukraine’s alleged deliberate disruption of oil supplies to the country.

“If [the loan] doesn’t work, we can always go back to using the frozen assets,” Kallas told journalists on Monday, calling it the EU’s original “plan A.”

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