Against the backdrop of a full-scale war and a growing state budget deficit, Ukraine has intensified its diplomatic efforts with the European Union, whose financial institutions hold over 200 billion euros in immobilized Russian assets. The central element of the new wave of negotiations has been Kyiv's attempt to bring the issue of using the frozen funds of the Russian central bank to cover the country's defense and reconstruction expenses back onto the EU agenda. Most of these assets are held in the Belgian financial depository Euroclear, which makes Brussels's position key to any decision.
Kyiv Brings the Issue Back to the Table
Ukrainian Vice Prime Minister Vsevolod Chentsov stated that the country is discussing several options with its European partners to cover budget shortfalls. According to him, in addition to the EU's 90 billion euro loan to Ukraine, there are other solutions. "We are also exploring possibilities within the EU and, in particular, putting forward the idea of the frozen assets," Chentsov said on Friday on the sidelines of an informal meeting of European affairs ministers in Dublin. The issue came back into focus after a number of EU member states called on the European Commission to examine new options for unlocking Russian assets.
What Kyiv Proposes to Break the Deadlock
The Ukrainian side insists that partial payments and broader guarantees could help overcome the deadlock created by Belgium's veto, which blocked the relevant plan in December 2025. According to Chentsov, the EU and Ukraine "need to consider other options, take into account, say, different figures as a first step," in order to secure the release of at least part of the Russian assets. The diplomat also emphasized that in searching for a solution, not only EU institutions but also other players capable of addressing Belgium's concerns could participate. "I am confident that if we want to find a solution, we will find one," he added. Ukrainian Foreign Minister Andriy Sybiha, for his part, pointed out that the country's defense and reconstruction costs continue to rise due to the ongoing war, and in this context proposed covering them from Russia's frozen assets.
Belgium's Position Remains Unchanged
The Belgian government, however, rejects proposals to use these funds, citing potential legal and financial risks. A spokesperson for Belgian Foreign Minister Maxime Prévot stated that the country's position remains unchanged. Earlier, Belgian Defense Minister Theo Francken stated that his country is categorically opposed to using Russia's frozen assets to financially support Ukraine. Thus, despite pressure from Kyiv and a number of European capitals, Brussels maintains its blocking position.
Diplomatic Search for Workarounds
According to Ukrainian media, four EU countries have called on the European Commission to resume work on transferring Russia's frozen assets to Ukraine. The search for legal pathways that would allow bypassing Belgium's blocking of the decision continues. Thus, by September 2026, the issue of frozen Russian assets has once again become one of the central topics in Kyiv's financial and political dialogue with Brussels, with the outcome of the negotiations largely depending on whether acceptable legal and financial guarantees can be offered to Belgium.
