On November 7, the US announced its support for the European Union (EU) to use frozen Russian assets as a tool to support Ukraine and end the conflict with Russia.
The statement comes as the West seeks to increase pressure on Moscow. The European Commission (EC) has proposed a plan to allow EU governments to use up to 185 billion euros (about $217 billion) - the majority of Russia's sovereign assets currently frozen in Europe - without having to seize them. This plan operates based on the collection of profits and interest arising from original assets.
After Russian President Vladimir Putin launched a military campaign in Ukraine in 2022, the US and its allies have banned transactions with central banks and the Russian financial services department, freezing about $300 billion in Russian sovereign assets worldwide.
However, Europe's proposal is currently stalled due to concerns from Belgium, which holds the majority of these assets in the archiving company Euroclear. Brussels is concerned about legal and financial risks, fearing that they could be sued and have to pay compensation to Russia in the future.
The situation became more tense when on November 7, Germany proposed that the recent mysterious drone discoveries at airports and military bases in Belgium could be a " messaging" from Moscow to warn Brussels not to touch frozen assets. However, Moscow has denied any involvement in the drone incidents.
In a new effort to pressure Russia into negotiations, US President Donald Trump imposed sanctions on Rosneft and Lukoil, Russia's two largest oil companies, in late October. The move highlights the US's intention to tighten Russia's finances and force the Kremlin to reach a peace deal.
The US is closely monitoring the consequences of sanctions against Rosneft and Lukoil, warning that "there is still much we can do to try to increase pressure". The USs strong support for a plan to use frozen assets is seen as part of this comprehensive pressure strategy.
