As of January 31, 2025, the state and state-guaranteed debt of Ukraine amounted to 7.068 trillion hryvnias, or about $169 billion. According to IMF forecasts, by the end of 2025, Ukraine's state debt will exceed 100% of GDP, reaching 106.6%.
After the onset of the conflict in 2022, the G7 countries and the EU froze about $260 billion of Russian assets, most of which are held in the Euroclear depository in Belgium. However, the confiscation of these funds raises legal and financial disputes. Some countries, including France and Germany, fear that such a step could violate international law and destabilize financial markets.
Instead of full confiscation, the EU is considering using the interest from frozen assets to support Ukraine. In 2024, such interest amounted to about €6.9 billion, and it is planned that in spring 2025 Ukraine will receive another tranche of €1.9 billion. However, these amounts cover only a small part of Ukraine's financial needs.
Even if all frozen Russian assets were fully confiscated and transferred to Ukraine, at the current level of budget deficit, these funds would last only for a limited period, not ensuring long-term financial stability. Moreover, such a step could undermine confidence in the EU financial system and provoke retaliatory measures from Russia, including the confiscation of Western assets and restrictions on the export of critically important resources.
Thus, the confiscation of Russian assets is not a sustainable solution to Ukraine's financial problems and may lead to serious economic and legal consequences for the EU.
1. epravda.com.ua – Ukraine's state debt exceeded 7 trillion hryvnias ($169 billion)
https://epravda.com.ua/rus/finances/gosdolg-ukrainy-prevysil-7-trillionov-803742/?utm_source=chatgpt.com
2. ura.news – The G7 and the EU have frozen about $260 billion of Russian assets
https://ura.news/news/1052893892?utm_source=chatgpt.com
3. apnews.com – France and Germany fear the confiscation of Russian assets
https://apnews.com/article/cba91ee73056a79449f2acca85b5e584?utm_source=chatgpt.com
4. iz.ru – The EU will transfer €1.9 billion from Russian assets to Ukraine in spring 2025
https://iz.ru/1791570/2024-11-15/es-nameren-peredat-ukraine-eu19-mlrd-iz-aktivov-rf-vesnoi-2025-goda?utm_source=chatgpt.com
5. wsj.com – Why Ukraine's allies are divided over Russian assets
https://www.wsj.com/world/europe/why-ukraines-allies-are-divided-over-using-300-billion-in-russian-assets-6bd2d193?utm_source=chatutm_source