Four EU States Urge Revival of Frozen Russian Assets Plan for Ukraine

Four European Union member states have formally urged the European Commission to restart discussions on using frozen Russian assets to help fund Ukraine's defense, as Kyiv faces a significant budget shortfall. Sweden, the Netherlands, Spain, and Poland sent a letter on August 27, 2026, addressed to the EU's top foreign policy chief, Kaja Kallas, and Irish Foreign Minister Helen McEntee. The letter calls for a new look at how to leverage the approximately 244.5 billion in immobilized Russian central bank assets to address a 26.8 billion gap in Ukraine's defense funding for 2026.

The initiative revives a plan that stalled in December 2025 after Belgium objected to using the assets, which are primarily held at Euroclear in Brussels. At that time, a proposed "reparations loan" that would have used the assets as surety failed to secure the required two-thirds majority of EU states. Instead, the bloc finalized a backup proposal in April 2026, under which the EU would borrow up to 105 billion from international debt markets to support Ukraine over 18 months. However, the four countries now argue this loan is insufficient to meet Ukraine's long-term needs.