Overview

• The Commission’s paper envisions moving immobilized Russian sovereign holdings into a special-purpose vehicle in exchange for zero-coupon EU bonds backed by a coalition of willing states and possible G7 partners.
• Subject to an IMF assessment, the approach could deliver about €140 billion in 2026–27, with Ukraine repaying only after Russia compensates for war damages.
• Belgium, Euroclear and the European Central Bank have flagged legal and investor-confidence risks, and officials cited in reporting do not expect a breakthrough at the Copenhagen meeting.
• The design seeks to bypass national vetoes and reduce pressure on the EU budget, yet national guarantees may need parliamentary sign-off and sanctions extensions still require unanimity unless leaders endorse a rule change.
• Windfall interest from the frozen assets, roughly €1.5 billion per quarter, continues to flow to Ukraine as EU leaders convene in Copenhagen and finance ministers prepare further discussions in Luxembourg.