European Commission considers using immobilized Russian assets to rebuild Ukraine - media

BRUSSELS. Aug 29 (Interfax) - The European Commission is elaborating a mechanism allowing to spend almost 200 billion euros of immobilized Russian assets on the post-conflict reconstruction of Ukraine, Politico said on Friday, citing its sources.

"Brussels is testing the appetite of national capitals for moving the assets into riskier investments that could generate more profits for Ukraine," the officials told Politico.

"As a workaround, the [European] Commission's lawyers are looking into transferring the assets into a 'special purpose vehicle' backed by a number of EU and potentially foreign countries," Politico said.

One of the sources said such G7 members supporting confiscation of Russian assets as Canada and the UK might take part in the fund. Project details have yet to be elaborated.

This is not confiscation of assets opposed by a majority of EU members because of financial and legal challenges, Politico said.

The project will be discussed for the first time at an informal meeting of EU foreign ministers in Copenhagen on Saturday, it said.

On August 10, the Financial Times said, citing its sources, that European states were considering the use of immobilized Russian assets for loans to Ukraine.

U.S. Vice President JD Vance said back then that Washington no longer wanted to finance Ukraine.

U.S. Secretary of Treasury Scott Bessent said several days ago that the immobilized Russian assets should continue to be used as leverage at negotiations with Moscow.

"I think it's all part of the negotiations with President [of Russia Vladimir] Putin, so I don't think we should immediately confiscate them. This is an element of bargaining during a large negotiation process," Bessent said in an interview with Fox Business.

Russian officials have repeatedly said they viewed the possible confiscation of immobilized assets as theft, which would not go unanswered.