Berliner Boersenzeitung - Trump Ukraine push spurs clamour for EU to use Russian assets

When Washington's proposals emerged last week they caused consternation among Ukraine's European backers, initially sidelined by the US administration in its latest push to end Russia's war.

Among the points heavily slanted towards Moscow, number 14 caused particular anxiety in Brussels.

It suggested essentially unfreezing some 200 billion euros of Russian central bank assets held in the EU and handing part of the money over to the United States and the Kremlin.

For many EU leaders, that went well beyond the pale -- and they quickly pressed US President Donald Trump to drop the demand.

"The Europeans are the only ones who have a say on what we will do with the frozen Russian assets held in Europe," French President Emmanuel Macron hammered home on Tuesday.

Fuelling the alarm was the fact that the US proposal came out just as the EU is debating a plan to use the frozen assets to fund a mammoth 140-billion-euro loan for Ukraine.

With European budgets stretched, proponents say the assets proposal is vital to keep Ukraine in the fight and to plug yawning budget black holes it faces next year.

Currently the initiative is in limbo, as Belgium -- where the bulk of the assets are held -- frets it could open itself up to legal retribution from Moscow.

EU officials have been hoping to decide at a summit on December 18 whether to use the assets to finance a loan for Ukraine -- or find another option to help keep the country afloat.

Now the spectre of potentially losing their grip on a key pot of funding for Kyiv -- and major leverage over Russia -- has sharpened calls to take the leap.

"The US proposal has further increased the pressure for an agreement on the frozen Russian assets," said one EU diplomat, speaking like others on condition of anonymity to discuss internal deliberations.

- Belgium 'unchanged' -

That argument has been seized on by EU leaders who have long insisted that tapping the assets was the best way to ensure Russia pays for the destruction it has wrought.

"It cannot be the case that Europe pays for what Russia has done," Polish Prime Minister Donald Tusk warned after conferring with fellow leaders Monday in Angola.

"I hope -- and this is not yet a final decision as there are still some concerns in a few European countries -- that we are much, much closer to deciding that Russian funds held under Europe's control should support Ukraine," he told a press conference.

But as questions swirl over the US push, there are also voices cautioning that it could make it trickier to press ahead.

"The new element of the peace plan has only added to the uncertainties over the risks of using the immobilised assets now," a second EU diplomat told AFP.

So far Belgium has shown little sign that it is willing to budge from demands that all EU countries give concrete guarantees they'll help share any risks.

And the US plan could give fuel to arguments that the EU shouldn't exhaust the assets now.

"Our concerns and position remain unchanged," a Belgian official told AFP.

"In any case, it is clear that those assets will play an important role in a peace plan."

Either way, EU officials say, the bloc will need to come up soon with a plan to keep financing Ukraine.

The US plan may have ruffled some feathers -- but ultimately officials say the choice boils down to whether Europe wants to tap the assets or come up with the money needed itself.

"Peace plan or not, the question how to finance Ukraine next year remains valid," a third EU diplomat said. "The frozen asset push will happen until we use them."

(B.Hartmann--BBZ)