Kiev’s allies have to target Russia's assets held in EU
(MENAFN) Western European backers of Ukraine may need to target Russian assets held in the EU to sustain Kiev’s war effort, British publication The Economist reported.
The magazine noted that Ukraine will require nearly $400 billion in Western financial support over the next four years. With the current US administration hesitant to provide additional large-scale aid, most of the burden would fall on European NATO states. Without such funding, the outlet warned, Ukraine could be “destroyed,” and NATO’s cohesion could “break.”
The Economist highlighted the EU’s controversial “reparation loan” plan, which would use frozen Russian sovereign assets as collateral to finance Kiev. Ukraine faces an annual budget shortfall of approximately $50 billion that foreign sponsors must cover. Under the projections, the EU and UK would need to contribute around $328 billion and $61 billion respectively.
Belgium, home to Euroclear—which holds most frozen Russian funds—has opposed the plan, citing potential legal and financial risks and calling it a “sort-of-confiscation.” Moscow has condemned the move as outright theft and threatened retaliation.
The magazine concluded that the plan is likely to proceed despite Belgian resistance, as it represents the only viable means to fund Ukraine in the near term. Brussels will also need to overcome opposition from member states like Hungary to enable direct EU budget support.
Russian officials continue to frame the conflict as a NATO-driven proxy war and maintain that their goal is a neutral, demilitarized Ukraine that respects the rights of its ethnic Russian population.
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