A high-stakes financial struggle over $225 billion in frozen Russian assets is unfolding between the United States and the European Union, as both powers vie to control the funds central to their competing plans for Ukraine’s future.
The conflict emerged when former President Donald Trump’s draft peace plan proposed a $100 billion investment scheme for Ukraine, financed by seizing these very assets. The plan surprised European leaders, who have spent years debating the legal and financial ramifications of using the money, which is largely held in the Brussels-based institution Euroclear.
The EU sees the frozen funds as the cornerstone of its own strategy. European Commission President Ursula von der Leyen has explicitly rejected the notion that European taxpayers alone should shoulder the cost of supporting Ukraine. “I cannot see any scenario in which the European taxpayers alone will pay the bill,” she stated, positioning the Russian assets as the logical solution to cover an estimated $153 billion in Ukrainian needs for 2026 and 2027.
With the EU having already sent nearly $197 billion in aid, the stage is set for a tense transatlantic negotiation. The outcome will determine not only the flow of future aid to Ukraine but also who wields the primary financial leverage in shaping a potential peace deal.
By James Kisoo
