Western accounts have frozen approximately $350 billion in Russian government assets since President Vladimir Putin ordered an invasion of Ukraine in 2022. Euroclear, a Belgium-based financial services company, holds $214 billion in these assets and reported generating at least $3.26 billion from interest in 2023. The question of how to utilize these assets to end the war or aid Ukraine has become crucial for Western allies.
British Foreign Secretary David Cameron proposed using the frozen funds to rebuild Ukraine, while the US administration has considered seizing some of the assets. Belgium has set aside tax earnings from the frozen funds to support Kyiv, but obstacles from Hungarian Prime Minister Viktor Orban and US Congress hardliners have delayed further assistance.
As Russia’s military spending rises, Western support for Ukraine may diminish. Seizing Russia’s assets raises concerns about setting a precedent for future conflicts and could prompt other countries to move away from the US dollar. However, proponents argue that holding Russia accountable for its aggression is essential in maintaining a just international order.
Time is running out, as Russia escalates attacks against Ukraine and seeks to deter Western support. Seizing Russia’s frozen assets is viewed as the most effective way to support Ukraine and discourage future aggression.