EU revives plan to use frozen Russian assets for Ukraine support

The European Commission has resumed efforts to establish legal mechanisms for utilizing frozen Russian central bank assets to fund Ukraine, a policy shift driven by Ukraine's widening fiscal gap and renewed political pressure from MEPs and member states. While the EU's urgency has increased, significant legal and political hurdles remain, including potential Russian retaliation. Germany has also proposed a loan for Ukraine backed by these assets, aiming to reduce the EU's budget contributions.