NATO defers decision on using frozen Russian assets for Ukraine to the EU

Following a meeting of NATO foreign ministers in Brussels, Secretary General Mark Rutte clarified the alliance’s position regarding the use of frozen Russian assets to support Ukraine. Rutte emphasized that the matter is primarily being shaped at the EU level and reiterated his trust in European Council President António Costa and European Commission President Ursula von der Leyen to lead the process. He noted that while the topic was discussed informally at NATO meetings, any formal decisions would be up to the European Union.

The European Commission has proposed two different financing options to address Ukraine’s budget needs in 2026 and 2027, including measures linked to revenues from frozen Russian assets. The commission also presented additional steps to protect member states and financial institutions against possible Russian retaliation, such as liquidity mechanisms to ensure Euroclear could meet financial obligations to Russia if necessary. These proposals are meant to provide both flexibility and protection amid growing international scrutiny.

However, Belgium, which holds the largest amount of frozen Russian assets in Europe, remains skeptical. Prime Minister Bart De Wever voiced concerns that the plans lack sufficient guarantees, while Foreign Minister Maxime Prévot outright rejected the proposals, citing serious legal and financial risks. The European Commission is continuing negotiations and drafting new arrangements that address Belgium’s concerns, with a final decision expected after several weeks of member state discussions.