EU's Plan to Use Russian Money for Ukraine Hits Roadblocks

The European Union is inching closer to a decision on how to use frozen Russian assets to support Ukraine. However, some major hurdles remain, and a final agreement might not be reached until Thursday's EU summit. Most of the frozen Russian assets, around 210 billion euros, are currently held in the EU. Belgium holds the largest share, with 185 billion euros, followed by France with 18 billion euros. The rest is spread across Luxembourg, Germany, and Sweden. Initially, the plan was to use these assets starting in 2026. But Belgium has raised concerns and wants other EU countries to share the financial risks if Russia sues over the use of these assets. This is a significant sticking point, as Belgium's prime minister wants a guarantee from other EU governments to cover any potential financial fallout.Other issues are also on the table. For instance, the European Commission wants 18 EU countries to withdraw from bilateral investment treaties with Russia. These treaties could be used by Russia to challenge the EU's sanctions and the use of these assets for Ukraine. France has its own demand: it wants Ukraine to use the money from the EU to buy defense equipment only from European suppliers, not from the United States or others. This is part of the Reparations Loan plan, which most EU countries prefer because it doesn't require them to spend their own money or take on new debt immediately. Ukraine's president has urged European leaders to stand united on this issue, emphasizing that Ukraine cannot stand strong without this support. The EU's decision on these frozen assets is crucial for Ukraine's ability to continue fighting against Russia's invasion.