The “peace plan” proposed by former US President Donald Trump to end the war in Ukraine could seriously obstruct the European Union’s plan to use Russia’s frozen assets. This was reported by Zamin.uz.
According to sources from Politico’s Europe bureau, the financial mechanisms outlined in Trump’s plan conflict with the European Union’s plans to allocate a “reparations loan” to Kyiv. A European official openly stated that Trump does not have the right to control Russian assets held in European territory.
A representative of one EU member state described the plans proposed by Washington as “insulting” and expressed strong criticism of Trump’s special envoy Steven Witkoff. The European Union has long been trying to develop fair and secure methods for using the frozen assets in the interest of Ukraine.
Trump’s plan, however, proposes transferring a large portion of these funds under US control and granting the US ownership of half the profits. This is considered an unacceptable proposal by European experts.
According to Washington’s plan, Europe and the US would allocate $200 billion from the frozen assets, with $100 billion under US control, and half of the profits from these funds would go to the US. The remaining funds would be the responsibility of Europe, with a portion directed to a US-Russia joint investment fund.
The European Union’s “reparations loan” program is based on a different mechanism. This loan would be granted to Ukraine only after the war ends and Russia agrees to compensate for the damage caused.
These funds would be returned to the Euroclear depository, allowing Russia to use them again. Belgian Prime Minister Bart De Wever stated at the EU summit in October that if European countries do not share the risk collectively, Brussels might be forced to close this initiative.
The fate of the assets is expected to be decided at the EU summit on December 18-19. The impact of Trump’s plan could further complicate this process.
According to European sources, the US demand to fully unblock the frozen assets places Brussels under heavy political pressure. If the EU decides to grant the “reparations loan” anyway, there is a risk that European countries will bear the responsibility of returning these funds to Russia later.
European diplomats emphasize that this provision of Trump’s plan could increase financial risks and disrupt the system of aid provided to Ukraine. The EU summit in December is expected to be decisive on this matter.
