EU urgently seeks agreement on using frozen Russian assets for Ukraine, as US touts other ideas

Russian President Vladimir Putin attends an official welcome ceremony at the Administrative complex Yntymak-Manas Ordo, in Bishkek, Kyrgyzstan. (AP)
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Updated 26 November 2025
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EU urgently seeks agreement on using frozen Russian assets for Ukraine, as US touts other ideas

  • Under the EU plan, the frozen Russian central bank assets in Europe would be lent to Ukraine for Kyiv to use for defense and regular budget needs

BRUSSELS: The European Union has accelerated efforts to agree on a scheme to use frozen Russian assets to help Ukraine after a US-backed peace plan last week set out different ideas, EU officials said.
EU leaders tried at a summit last month to agree on a plan to use 140 billion euros ($162 billion) in frozen Russian sovereign assets in Europe as a loan for Kyiv, but failed to secure the backing of Belgium, where much of the funds are held.
The European Commission, the EU executive body, hopes to address Belgium’s concerns in a draft legal proposal which it will present this week on using the frozen sovereign assets to support Kyiv in 2026 and 2027, EU officials said.
Work on the EU plan was already under way but details that emerged last week of how the assets might be used under the US-backed plan, which European leaders saw as heavily favoring Moscow, have helped focus minds in the 27-nation bloc.
“It surely made work on this even more urgent,” one official with knowledge of preparations for the project said.

EU MUST HELP UKRAINE DEFEND ITSELF, VON DER LEYEN SAYS
Under the EU plan, which has been discussed since October, the frozen Russian central bank assets in Europe would be lent to Ukraine for Kyiv to use for defense and regular budget needs.
This would provide welcome respite for EU governments, the biggest donors to Ukraine since Russia’s full-scale invasion in February 2022. Ukraine would pay back the 140-billion-euro loan only when it receives war reparations from Russia.
The latest version of the US-backed plan has not been released.
But under the US-backed plan that was presented last week, $100 billion of the frozen Russian funds would be invested in a US-led effort to reconstruct and invest in Ukraine, with the US getting 50 percent of the profits from this venture, according to details of the 28-point plan that were made public.
Under that plan, Europe would have to match the $100-billion contribution to increase the investment available to rebuild Ukraine while the balance of the frozen funds would be invested in a separate US-Russia investment vehicle to pursue joint US-Russia projects.
The Commission’s draft legal text is intended to help win the support of Belgium, where 185 billion euros of the 210 billion euros of assets frozen in Europe are located, because it would have to address in detail various legal guarantees that the Belgian government has demanded.
“We need to support Ukraine to defend itself. We committed ourselves to cover Ukraine’s financial needs in 2026 and 2027. This includes an option on immobilized Russian assets,” European Commission President Ursula von der Leyen told the European Parliament on Wednesday.
“The next step now is that the Commission is ready to present a legal text and, to be very clear, I cannot see any scenario in which the European taxpayer alone will pay the bill.”
WHY IS AGREEMENT SO HARD?
Among Belgium’s main concerns, which have to be addressed before EU leaders discuss the plan again on December 18, is the issue of potential Russian lawsuits against the Belgian securities depository Euroclear, where the assets are kept.
Such lawsuits could be costly, long-lasting or even launched years from now. The Belgian government wants other EU countries to guarantee it would not be left alone to cover the expense and financial fallout.
Similarly, should courts ever decide that Russia must get its frozen money back before Moscow pays reparations to Kyiv, Belgium wants others to guarantee they would help provide the money — and quickly.
While the Russian money remains frozen under a decision by EU leaders until Russia pays reparations, this decision needs to be renewed by unanimity every six months.
This creates a risk that Hungary, whose prime minister is closer to Moscow than other EU leaders, might refuse to roll over the sanctions and in this way automatically release the funds to Moscow.
Belgium and other EU governments want the Commission to come up with a way to prevent that before they approve the scheme.
Apart from the 185 billion euros immobilized in Belgium, there is an estimated 25 billion euros more of Russian sovereign money frozen in EU banks in various countries, mainly in France and Luxembourg.
Belgium says other countries that have Russian cash, including Canada, Japan, Britain and the US — all of which are members of the Group of Seven wealthy nations — should also be included in the scheme.
EU officials close to the talks between the Commission and Belgium are confident that all these concerns can be addressed one by one.
“But ultimately, it will be about political will,” the EU official close to the talks said.


With Iran war exit elusive, Trump aides vie to affect outcome

Updated 13 March 2026
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With Iran war exit elusive, Trump aides vie to affect outcome

  • Aides debate when and how to declare victory even as the conflict spreads across the Middle East
  • In taking America to war, US President Donald Trump offered little explanation

WASHINGTON: A complex tug-of-war inside the White House is driving US President Donald Trump’s shifting public statements on the course of the Iran war, as aides debate when and how to declare victory even as the conflict spreads across the Middle East.

Some officials and advisers are warning Trump that surging gasoline prices could exact a political cost from the US-Israeli attacks on Iran, while some hawks are pressing the president to maintain the offensive against the Islamic Republic, according to interviews with a Trump adviser and others close to the deliberations.

Their observations to Reuters offer a previously unreported glimpse inside White House decision-making as it adjusts its approach to the biggest US military operation since the 2003 Iraq war.

Shifting messages, various internal viewpoints

The behind-the-scenes maneuvering underscores the high stakes Trump, who returned to office last year promising to avoid “stupid” military interventions, faces nearly two weeks after plunging the nation into a war that has rattled global financial markets and disrupted the international oil trade.

The jockeying for Trump’s ear is a feature of his presidency, but this time the consequences are a matter of war and peace in one of the world’s most volatile and economically critical regions.

Shifting from the sweeping goals he framed in launching the war on February 28, Trump in recent days has emphasized that he views the conflict as a limited campaign whose objectives have mostly been met.

But the message remains unclear to many, including the energy markets, which have lurched in both directions in response to Trump’s statements.

He told a campaign-style rally in Kentucky on Wednesday that “we won” the war, then abruptly pivoted: “We don’t want to leave early, do we? We’ve got to finish the job.”

Economic advisers and officials, including from the Treasury Department and the National Economic Council, have warned Trump that an oil shock and rising gasoline prices could quickly erode domestic support for the war, said the adviser and two others close to the deliberations, speaking on the condition of anonymity to disclose internal discussions.

Political advisers, including Chief of Staff Susie Wiles and deputy chief James Blair, are making similar arguments, focusing on the political fallout from higher gas prices and urging Trump to define victory narrowly and signal the operation is limited and nearly finished, the sources said.

Pushing in the other direction are hawkish voices urging Trump to sustain military pressure on Iran, including Republican lawmakers such as US Senators Lindsey Graham and Tom Cotton, and media commentators such as Mark Levin, according to people familiar with the matter.

They argue the US must prevent Iran from obtaining a nuclear weapon and respond forcefully to attacks on American troops and shipping.

A third force comes from Trump’s populist base and figures such as strategist Steve Bannon and right-wing television personality Tucker Carlson, who have been pressing him and his top aides to avoid getting dragged into another prolonged Middle East conflict.

“He is allowing the hawks to believe the campaign continues, wants markets to believe the war might end soon and his base to believe escalation will be limited,” the Trump adviser said.

Asked for comment, White House press secretary Karoline Leavitt said in a statement: “This story is based on gossip and speculation from anonymous sources who aren’t even in the room for any discussions with President Trump.

“The President is known for being a good listener and seeking the opinions of many people, but ultimately everyone knows he’s the final decision maker and his own best messenger,” she said. “The President’s entire team is focused on ensuring the objectives of Operation Epic Fury are fully achieved.”

Other people named for their roles in the deliberations did not immediately respond to Reuters’ questions.

Looking for an exit

In taking America to war, Trump offered little explanation, and the administration’s stated war aims have ranged from thwarting an imminent attack by Iran to crippling its nuclear program to replacing its government.

As he seeks an exit from an unpopular conflict, Trump is trying to juggle competing narratives that some critics say have complicated an already difficult situation, with Iran defiant despite the devastating US-Israeli air assault.

Top political aides and economic advisers, whose warnings before the war of the potential economic shock were largely ignored, appear to have played a major role in pushing Trump’s efforts this week to reassure skittish markets and contain rising oil and gas prices.

His public shift to downplaying the war’s impact, describing it as a “short-term excursion,” and his insistence that gas price hikes would be short-lived appeared aimed at calming fears of an open-ended conflict.

Some top aides have advised him to work toward a conclusion to the conflict that he can call a triumph, at least militarily, the sources said, even if much of the Iranian leadership survives, along with remnants of a nuclear program that the campaign was meant to target.

Wave after wave of US and Israeli air strikes have killed a number of top Iranian leaders among some 2,000 people overall – some as far away as Lebanon – devastated its ballistic missile arsenal, sunk much of its navy and degraded its ability to support armed proxies around the Middle East.

But the military achievements have been seriously undercut by Iran’s stepped-up attacks on oil tankers and transport facilities in the Gulf, driving up oil prices.

Trump has said he will decide when to end the campaign. He and his aides say they are far ahead of the four- to six-week timeframe Trump initially announced.

The shifting reasons for launching the conflict, which has spilled over into more than half a dozen other countries, have only made it more difficult to predict what comes next.

For their part, Iran’s rulers will claim victory, analysts say, for simply surviving the US-Israeli onslaught, especially after demonstrating their ability to fight back and inflict damage on Israel, the US and its allies.

Venezuela miscalculation

Critical to the war’s final trajectory will be the Strait of Hormuz. A fifth of the world’s oil shipments, which normally traverses the narrow waterway, has come to a near-standstill. Iran in recent days has struck tankers in Iraqi waters and other ships near the strait, and the new Supreme Leader Mojtaba Khamenei has vowed to keep it shut.

If Iran’s stranglehold on the waterway pushes US gas prices high enough, that could increase political pressure on Trump to end the military campaign to help his Republican Party, which is defending narrow majorities in Congress in November’s midterm elections.

Trump has recently refrained from pushing the idea that the war seeks to topple the government in Tehran. US intelligence indicates that Iran’s leadership is not at risk of collapse anytime soon, Reuters reported on Wednesday.

At least some of the confusion over the war’s trajectory appears rooted in the quick US military success in Venezuela.

Since the start of the war, some aides have struggled to convince Trump that the Iran campaign was unlikely to unfold in the same way as the January 3 Venezuela raid that captured President Nicolas Maduro, according to another source familiar with the administration’s thinking.

That operation opened the way for Trump to coerce former Maduro loyalists into giving him considerable sway over the country’s vast oil reserves – without requiring extended US military action.

Iran, by contrast, has proved a much tougher, better-armed foe with an entrenched clerical and security establishment.

Experts have rejected claims by Trump aides that Iran had been within weeks of being able to produce a nuclear weapon, despite the president’s insistence in June that US-Israeli bombing had “obliterated” its nuclear program.

Most of Iran’s stockpile of highly enriched uranium is believed to have been buried by the June strikes, meaning the material potentially could be retrieved and purified to bomb grade. Iran has always denied seeking nuclear weapons.

If the war drags on, American casualties mount and the economic costs multiply, some analysts say it could erode backing from Trump’s political base. But despite criticism from some supporters opposed to military interventions, members of his “Make America Great Again” movement have so far largely stayed with him on Iran.

“The MAGA base is going to give the president wiggle room,” said Republican strategist Ford O’Connell.