Reuters: US fully supports EU plan to use frozen Russian assets to aid Ukraine

Washington has expressed full support for the European Union’s proposal to use frozen Russian assets to provide assistance to Ukraine and increase pressure on Russia in its ongoing war of aggression, according to Reuters, citing a knowledgeable U.S. source.

“[Washington] absolutely supports [the EU] and the steps they’re taking right now to be in a position to make use of those assets as a tool,” the source said.

The official added that the U.S. is also assessing the impact of its own sanctions on state-run Rosneft and privately-owned Lukoil – by far, the two largest oil and gas companies in Russia. 

The European Commission has proposed a plan allowing EU governments to use up to 185 billion euros, mostly frozen Russian sovereign assets that are held in Europe, to support Ukraine, without formally confiscating the funds.

However, approval of the plan has been delayed due to concerns from Belgium, where the majority of these assets are held.

A large portion of Russian-state or Russian-linked financial assets that have been frozen by Western and EU sanctions are held or “immobilized” in Belgium, which is primarily via the Brussels-headquartered securities depository Euroclear. 

Earlier, UWC Executive Committee member Zenon Kowal explained that Belgium is not categorically opposed to using frozen Russian assets to support Ukraine but insists on strong legal safeguards.

Also read: Former UWC President Eugene Czolij: Russia’s frozen sovereign assets must be confiscated now