E3 considers seizing frozen Russian assets in ceasefire negotiations: FT

While Berlin and Paris had previously resisted full asset confiscation, they are now engaging in talks with European and G7 partners about potential mechanisms to use the funds.

A proposal discussed by French officials suggests seizing the assets if Moscow violates a future ceasefire agreement, ensuring security guarantees for Kyiv.

Diplomatic activity has intensified in recent weeks, with France and the U.K. leading efforts to draft a European peace plan.

These discussions gained momentum after U.S. President Donald Trump launched direct negotiations with Russia aimed at ending the war. Since 2022, G7 nations have frozen roughly 300 billion euro ($310 billion) in Russian central bank assets, with the majority—around 190 billion euro ($200 billion) —held in Belgium’s Euroclear.

Currently, only the interest generated by these funds is being used to back a $50 billion loan package for Ukraine, while the principal remains untouched.

Ukraine, Poland, and the Baltic states have long pushed for the full confiscation of these assets, but major European capitals had resisted over concerns about international legal precedents and financial stability.

The European Central Bank had warned that such a move could undermine confidence in the euro as a reserve currency, given that most of the frozen assets are euro-denominated.

However, shifting political dynamics appear to be changing the debate.

French President Emmanuel Macron recently told Trump that immediate seizure would not align with international law but suggested the assets could be part of post-war negotiations.

Meanwhile, Germany’s likely next chancellor, Friedrich Merz, has signaled openness to asset seizure and is coordinating with outgoing Chancellor Olaf Scholz ahead of an EU summit.

In the U.K., Prime Minister Keir Starmer confirmed that London is examining ways to deploy the funds, noting that while profits from Russian sovereign assets are already being used to support Ukraine, the fate of the principal remains complex.