NextFin news, On this Wednesday, September 10, 2025, the European Union transferred over 10 billion euros to Ukraine from revenues generated by frozen Russian assets held within the EU, according to the European Commission. These funds are part of more than 200 billion euros of Russian assets frozen across EU member states since Russia's 2022 invasion of Ukraine.
The transfer aims to support Ukraine's defense and reconstruction efforts amid ongoing conflict. However, the move has sparked debate within the EU regarding the legality and implications of using frozen sovereign assets in this manner.
Belgium, where a significant portion of these assets are held, has expressed strong opposition to confiscating or transferring these funds without a solid legal basis. Belgian Foreign Minister Maxime Prévot stated in an interview with Financial Times that Belgium is prepared to consider riskier investment strategies to maximize returns from the frozen assets but insists on shared legal risk among EU countries. He emphasized that confiscation is not an option due to the absence of legal grounds and the potential damage to Belgium's reputation as a financial center.
Euroclear, the Brussels-based depository managing much of the frozen Russian assets, also warned that confiscation could undermine trust in the euro and the EU's financial system, potentially deterring countries from holding sovereign reserves in Europe.
European Commission President Ursula von der Leyen has indicated ongoing efforts to utilize frozen Russian assets to contribute to Ukraine's defense and rebuilding, while stressing the need for a firm legal framework to avoid undermining international financial norms.
The debate reflects a broader division within the EU: Eastern European countries advocate for full confiscation to punish Russia and aid Ukraine, while major Western capitals prioritize adherence to international law and financial stability.
Legal experts highlight that freezing assets suspends their use but does not transfer ownership, which is protected under international law unless specific countermeasures are established. The European Union's Directive 2024/1260 harmonizes asset seizures related to criminal offenses but does not permit administrative confiscation of sovereign assets.
Concerns also exist about the precedent such confiscations could set, potentially affecting the EU's relations with other global financial partners and the stability of the international financial system.
In summary, while the EU has moved forward with transferring significant funds from frozen Russian assets to Ukraine this Wednesday, the process remains legally complex and politically sensitive, with member states like Belgium urging caution to preserve trust in international financial institutions and the euro.
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