**EU Considers New Investments for Frozen Russian Assets to Boost Ukraine Aid**
The European Union is exploring a plan to generate more revenue for Ukraine by investing frozen Russian assets into higher-yielding investments. According to Politico, the proposal would involve redirecting nearly 200 billion euros ($215 billion) in frozen Russian assets into a special investment fund under EU control.
This move aims to boost Ukraine’s funding without confiscating the assets, which are currently held by Belgium-based clearinghouse Euroclear. The funds have been immobilized since 2022 under EU sanctions imposed following Russia’s full-scale invasion of Ukraine.
Under the current framework, the assets are invested conservatively with the Belgian central bank, generating low but steady returns. In 2024, this approach yielded around 4 billion euros ($4.3 billion) in windfall profits, which were allocated to help service a G7-backed 45-billion-euro loan for Ukraine.
**Pressure on EU Officials**
With the loan largely disbursed and concerns mounting over future financing, especially amid signals from U.S. President Donald Trump that American support could be scaled back, EU officials are under pressure to find new funding streams. The proposed plan would allow the EU to generate higher returns without confiscating the assets, sidestepping legal and political opposition.
**Ukraine’s Ongoing Struggle**
The conflict in Ukraine continues, with Russian forces launching attacks on Kherson Oblast and Ukrainian air defenses shooting down 40 drones. The war has taken a significant toll on civilians, with at least 28 people killed and 134 others injured in a mass missile and drone attack on Kyiv overnight.
**Global Response**
The international community is responding to the crisis, with NATO Secretary General Mark Rutte welcoming recent developments. However, tensions remain high, particularly between Russia and Ukraine’s Western allies.
In conclusion, the EU’s proposal to invest frozen Russian assets into higher-yielding investments could provide a much-needed boost to Ukraine’s funding. As the conflict in Ukraine continues, it is essential that the international community remains committed to supporting the country and finding a peaceful resolution to the crisis.
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