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Europe Weighs Seizing Russian Assets as U.S. Alters Ukraine Policy

European leaders face mounting pressure to confiscate $300 billion in frozen Russian funds to support Ukraine, despite legal and economic risks.

Dark clouds are seen over the building of the European Central Bank (ECB) before the ECB's monetary policy meeting in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo

Overview

  • The U.S. under President Trump has signaled a shift in Ukraine policy, reducing support and prompting Europe to explore alternative funding options.
  • European nations are debating the seizure of $300 billion in Russian central bank assets frozen since the 2022 invasion of Ukraine.
  • The European Central Bank (ECB) warns that confiscating sovereign assets could undermine the euro's global standing and legal credibility.
  • Some European politicians and central bankers, particularly in frontline nations like Latvia, are increasingly open to the idea despite ECB opposition.
  • Seizing the assets could strain Europe's financial systems, deter foreign investors, and provoke retaliatory measures from non-Western countries.