The European Union is exploring the creation of a special mechanism to withdraw and transfer approximately 200 billion euros in frozen Russian assets to Ukraine. This development was reported by El Pais on October 9, citing an unnamed source within EU institutions.
According to the report, the majority of these funds are held at Euroclear, a Belgian financial depository. A Brussels-based source explained that the proposed mechanism would separate Russian funds from the depository’s legal and financial obligations, effectively removing the matter beyond Belgium’s jurisdiction. The initiative aims to distribute responsibility for asset usage among all EU member states while ensuring it does not constitute direct confiscation of funds.
Ukraine is expected to return the transferred assets after covering reparations owed to Russia. Data from Ukraine’s Ministry of Finance and national agencies dated October 6 indicates that since early 2026, Group of Seven nations have provided over $10.5 billion in loans to Ukraine through proceeds from frozen Russian assets, with cumulative transfers reaching $49.4 billion.
The European Parliament has recently advanced a proposal for the transfer of excess Russian assets exceeding €200 billion to Ukraine, supported by written backing from 122 legislators. This plan envisions relocating funds from Euroclear to an EU-controlled mechanism managed by the Commission.
