Stand behind Ukrainian independent journalism when it’s needed most. Help us reach 20,000 members.

Skip to content
Edit post

EU should keep frozen Russian assets until reparations paid even if US returns funds, commissioner says

by Dominic Culverwell and Kateryna Denisova March 20, 2025 9:39 PM 2 min read
EU Economy and Trade Commissioner Valdis Dombrovskis speaks during a news conference at the Economic and Financial Affairs Council (ECOFIN) meeting at the European Council headquarters in Brussels, Belgium, on March 11, 2025. (Simon Wohlfahrt/Bloomberg via Getty Images)
This audio is created with AI assistance

The European Union shouldn't return frozen assets to Russia unless Moscow pays reparations to Ukraine even if the U.S. withdraws from the G7 initiative, EU Economy and Trade Commissioner Valdis Dombrovskis said on March 20 in Kyiv.

"G7 decision that those assets are not going back to Russia unless Russia pays for its damages is something which is already decided. And it's important to stick with this decision," Dombrovskis told journalists.

"I think that provides important leverage with Russia."

The statement comes after U.S. President Donald Trump's U-turn in Ukraine and EU policy. Amid Trump's effort to end Russia's war in Ukraine, the potential easing of sanctions against Russia has been discussed as a possible step.

Dombrovskis said that if the U.S. decides to unilaterally withdraw from some of the sanctions imposed on Russia, "it does not mean that the EU has to automatically follow this."

Western nations froze around $300 billion in Russian assets after Moscow launched its full-scale invasion of Ukraine in February 2022, with roughly two-thirds held in Europe.

In October 2024, the Group of Seven (G7) agreed to provide Ukraine with nearly $50 billion in loans backed by the revenue generated from frozen Russian assets. While Ukraine has received loans backed by the interest earned from these assets, Kyiv has repeatedly called for full confiscation to fund its defense and reconstruction.

The West has so far been divided about whether to confiscate the assets and hand them over to Ukraine.

In its statement issued during the EU summit in Brussels on March 20, the European Council reiterated, citing the EU law, that Russia’s assets "should remain immobilized" until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by this war.

The EU Council also said it is ready to step up pressure on Moscow, including through further sanctions.

$5.4 billion on ammunition for Ukraine ‘realistic’ goal, EU’s top diplomat says
The EU is working on providing Ukraine with 5 billion euros ($5.4 billion) for ammunition, top EU diplomat Kaja Kallas said on March 20, as a much larger 40-billion-euro ($43 billion) package still lacks consensus.

Independent journalism needs a community —
not a paywall.

We’re working hard to show the world the truth of Russia’s brutal war — and we’re keeping it free for everyone, because reliable information should be available to all.

Our goal: reach 20,000 members to prove independent journalism can survive without paywalls, billionaires, or compromise. Will you help us do it?

Can we reach 20,000 members?

News Feed

11:31 PM

US rolls back Assad-era sanctions on Syria.

The United States granted immediate sanctions relief to Syria after President Donald Trump called for a complete end to sanctions on the country. The sanctions relief was announced by the U.S. Treasury Department and State Department on May 23.
5:27 PM

Inside Ukraine’s 1,000 for 1,000 POW swap with Russia.

On May 23, Ukraine and Russia began the largest prisoner exchange since 2014. Over three days, 1,000 prisoners of war (POWs) from both sides will return home in a deal agreed upon during direct Russia-Ukraine talks in Istanbul earlier this month — the first such talks between Moscow and Kyiv since 2022. The Kyiv Independent went to the site of exchange.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
Subscribe
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required
Subscribe
* indicates required
Explaining Ukraine with Kate Tsurkan
* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.