Ukrainian President Volodymyr Zelensky stated the country's intention to use 210 billion EUR (over 246 billion USD) of Russian assets frozen in Europe to meet urgent financial needs over the next few years, including the purchase of weapons. He made these remarks at a joint press conference with Dutch Prime Minister Dick Schoof in The Hague on 16/12/2023, acknowledging a decline in military aid to Ukraine.

Zelensky detailed the expected timeline for receiving these funds: "We could receive 40-45 billion EUR (47-53 billion USD) in 2026 and continue in that manner, expecting to receive a total of 210 billion EUR."

While Ukraine aims to use these funds for reconstruction, Zelensky noted that this amount is insufficient to cover the full extent of conflict losses. "It is fair for Russia to compensate for damages, but even 210 billion EUR is not enough, as the level of losses is three times higher," he stated.

Zelensky at a press conference in the Netherlands on 16/12/2023. *Photo: Office of the President of Ukraine*

Zelensky emphasized the necessity of using Russian assets for urgent expenditures, such as buying weapons, particularly as military aid to Ukraine dwindles. He highlighted the strategic importance of these funds to compensate for reduced international support.

"Frozen assets can help offset the decrease in support from some nations. Without this, Ukraine cannot sustain itself, nor can it compensate for the shortfall with vague alternatives or unclear promises," President Zelensky noted.

Western countries imposed numerous sanctions on Russia following the conflict's eruption in February 2022, freezing assets of the Russian central bank and its oligarchs. Of the over 246 billion USD frozen across the European Union (EU), 217 billion is held in Belgium, 21 billion in France, with the remainder in Luxembourg, Germany, and Sweden.

The EU plans to utilize Russian assets frozen in Belgium to provide Ukraine with up to 194 billion USD in loans during the 2026-2027 period. These funds are intended to help Kyiv address both civilian and military needs, with repayment contingent on Russia compensating Ukraine for conflict damages.

Plan to use frozen Russian assets to support Ukraine. *Graphic: WSJ*

A significant legal development occurred on 13/12/2023, when the EU reached an agreement to indefinitely freeze Russian assets. This accord removes legal obstacles to using these funds for Ukraine's support.

Kirill Dmitriev, a close advisor to the Russian President, condemned the EU's action as "theft." He warned that such moves could erode confidence in the euro and central banks within the region.

Pham Giang (According to Ukrainska Pravda, Reuters)