In February 2022, Russia launched a full‑scale attack on Ukraine. The European Union quickly froze Russian central bank assets that are now worth over €210 billion, with the majority held by Euroclear in Belgium. These funds have been kept idle while Ukraine’s people suffer war damage, displacement and loss of life.

Ukraine’s president has asked for a large development package to rebuild the country. He wants a Ukraine Development Fund and a capital‑grant fund of about $200 billion to help the nation recover. The frozen Russian money could be used as collateral for a loan or directly transferred to Ukraine, giving the country immediate resources to pay for repairs and compensate victims.

Despite this possibility, some European leaders are hesitant. They worry that using the frozen assets might create a legal problem or expose them to lawsuits. In December 2025, Russia’s Central Bank sued in a Moscow court, claiming that the EU is illegally withholding its assets. The court case alleges that Russia should be able to use the money for its own purposes and that the EU is “thefting” sovereign assets.

The Russian claim faces several obstacles. First, Moscow’s court is not the proper forum to resolve disputes about EU sanctions or frozen assets; those matters belong to international law and multilateral agreements. Second, Russia has no standing because the Central Bank is a state entity acting in its sovereign capacity, not as a private investor. Third, the merits of the case are weak because international bodies and United Nations resolutions have condemned Russia’s invasion and called for reparations. Fourth, any judgment in Moscow would be unenforced in Europe or the United States because EU law explicitly blocks enforcement of such awards. Fifth, Belgium and other EU members can counter‑claim for damages caused by Russia’s aggression.

In short, there is no real legal barrier to using the frozen Russian money for Ukraine. The main obstacle is political will. If European leaders decide to tap these assets, they would give Ukraine the funds it needs for reconstruction and also signal that Russia must pay reparations. This step would reinforce international law’s role in resolving conflict and help build a lasting peace.

Use Frozen Russian Money for Ukraine’s Repair

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