Zelenskyy Heads to Brussels Amid U.S.-EU Split Over Frozen Russian Assets

BRUSSELS – As Ukrainian President Volodymyr Zelenskyy prepares for critical negotiations here tomorrow, a high-stakes question is creating a rift between Washington and its European allies: What should be done with billions in frozen Russian sovereign assets?

Zelenskyy is expected to make a forceful case for using the immobilized funds to directly finance Ukraine’s war effort. But his visit comes at a moment of intense political friction. According to a Ukrainian official, the United States is actively lobbying key European Union members to shelve a plan that would do just that, adding a new layer of complexity to the talks.

The European Union has drafted a proposal to leverage the frozen assets to raise approximately €90 billion (about $97 billion) for Ukraine. The mechanism would function as a loan, with the expectation that it would be repaid from future war reparations demanded from Russia.

Pressure from Across the Atlantic

The plan, however, faces a significant hurdle from Washington. “The American government is pressuring European countries to abandon the idea of using Russian assets to support Ukraine,” a Ukrainian official stated, highlighting a stark difference in strategy between the two Western powers.

According to the Ukrainian side, seven EU member states have already voiced opposition to the proposal. Despite this, Zelenskyy is “going to Brussels to motivate the European countries to make this decision” and unlock the Russian funds, the official added.

Kay Nietfeld/Pool via REUTERS

The division isn’t just transatlantic; it exists within the EU itself. While major players like Germany support the initiative, others are deeply hesitant. Belgium, for instance, has expressed serious reservations. The country is home to Euroclear, the international securities depository that holds the majority of the frozen assets, and Belgian authorities fear legal challenges and retaliatory measures from Moscow.

Since Russia’s full-scale invasion in February 2022, roughly €200 billion in Russian central bank assets have been frozen by Western nations, becoming a powerful and contentious tool on the international diplomatic stage.

A Bargaining Chip for Washington?

The American reluctance appears to be rooted in a different strategic calculation. Officials who spoke with Agence France-Presse (AFP) suggested that Washington views the frozen funds as a crucial piece of leverage in any future negotiations with the Kremlin.

Instead of liquidating the assets for immediate use, this strategy would keep them on the table as an incentive for Moscow, with the possibility of returning a portion of the funds in exchange for concessions in peace talks. The legal and financial complexities of seizing sovereign assets are also a major consideration, as detailed in analysis by institutions like the Council on Foreign Relations.

Further reporting from Bloomberg indicates the U.S. administration may also be weighing other forms of pressure, including new sanctions on Russia’s energy sector, specifically targeting its so-called “shadow fleet” of oil tankers.

As Zelenskyy arrives in Brussels, he finds himself navigating not only a war at home but also a complex diplomatic chessboard. The outcome of tomorrow’s talks could determine whether billions in Russian assets are converted into critical aid for Kyiv or remain a frozen pawn in a longer geopolitical game.