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.