Netherlands Revives Push to Tap Frozen Russian Assets

The Netherlands has reignited a contentious debate within the European Union over the use of approximately €200 billion in frozen Russian assets held at Euroclear in Brussels, threatening to reopen deep divisions that European leaders thought they had resolved last December. Dutch Finance Minister Eelco Heinen raised the issue during a closed-door meeting of EU finance ministers on May 5, seeking support for tapping the assets to fund Ukraine’s defense, according to Politico.

A Delicate Diplomatic Balance

The renewed push comes despite months of staunch opposition from Belgian Prime Minister Bart De Wever, who successfully blocked similar proposals in December 2025. De Wever has argued that using the assets would expose Euroclear — the Brussels-based financial clearinghouse that holds the bulk of the frozen funds — to massive liability and potential Russian retaliation.

At the Ecofin meeting, Estonia, Latvia, Lithuania, and Finland openly supported Heinen’s call. “The Swedes and Balts openly supported that request. The European powers did not intervene. Luxembourg defended us,” an anonymous well-informed source told De Morgen.

The December 2025 Compromise

Last December, after months of tense negotiations, EU leaders agreed on a €90 billion loan for Ukraine backed by the EU budget — a so-called “Plan B” adopted after Belgium blocked the European Commission’s original proposal to leverage the Russian assets directly. De Wever had demanded three conditions: a “backstop” ensuring Euroclear could immediately return assets after a court ruling or peace agreement, EU-wide sharing of potential liability, and an agreement to also use Russian assets held outside Belgium.

The compromise was widely seen as a diplomatic victory for the Belgian prime minister. However, not a single euro from that loan has been disbursed yet. The first tranche of €9 billion is expected in June 2026, following Hungary’s withdrawal of its veto after Péter Magyar’s election victory over Viktor Orbán in April.

A Moscow Court Ruling Complicates Matters

Just days before the Dutch push became public, a Moscow arbitration court on May 15 ruled against Euroclear in a lawsuit filed by Russia’s Central Bank, ordering the clearinghouse to pay 18.2 trillion rubles (approximately $249.7 billion) in compensation for illegally holding frozen assets, as reported by AP News. Euroclear plans to appeal, arguing its right to a fair trial was violated.

While the ruling is largely unenforceable in Belgium, it provides legal cover for Russia to seize Belgian assets and properties in Russia — estimated at approximately €1 billion. “The Russians can’t enforce that fine, but the danger is that they will seize Belgian assets and properties in the country,” an anonymous source told De Morgen.

Why the Netherlands Is Pushing Now

The Dutch government, traditionally fiscally conservative and opposed to common EU debt, sees frozen Russian assets as an alternative to additional EU budget contributions for Ukraine. With the Trump administration having reduced US financial support for Ukraine, European allies face mounting pressure to fill the gap.

Ukraine’s budget shortfall is estimated at €71 billion for 2026 and €64 billion for 2027 — figures that assume the war will end this year, a prospect few believe will materialize. The €90 billion EU loan covers only about two-thirds of Ukraine’s projected needs through 2027. The European Commission is lobbying Canada, the UK, Japan, and the US for additional contributions, but Washington’s commitment under President Trump remains uncertain.

Legal and Financial Risks

Tapping the principal of frozen Russian assets raises significant legal questions. Russian assets are protected under international law principles of sovereign immunity, and the funds technically remain Russian state property, merely immobilized. The European Central Bank has warned that seizing the assets could deter other sovereign investors from holding reserves in euros, potentially destabilizing the eurozone’s financial architecture.

Russia is pursuing a multi-pronged legal strategy — suing Euroclear in Russian courts, suing the EU at the European Court of Justice, and threatening asset seizures — to deter any move against its frozen reserves. Moscow’s Central Bank has condemned the use of frozen assets to aid Ukraine as “illegal, contrary to international law.”

What Comes Next

The Dutch push is unlikely to succeed immediately given continued Belgian resistance and the unresolved Moscow court ruling. However, it keeps the issue alive and sets the stage for renewed debate at year-end, when Ukraine’s funding needs will become more acute. As one EU diplomat told Politico: “We support [Heinen’s calls] too, but didn’t speak up. This will come back by year-end.”

Looking further ahead, the frozen assets will remain a central bargaining chip in any Ukraine peace negotiations. Europe wants to use the billions for Ukraine’s post-war reconstruction, but this requires Russia’s consent — and Moscow wants the money back. Who will represent Europe in those talks remains undecided, with EU foreign affairs chief Kaja Kallas, Finnish President Alexander Stubb, German Chancellor Friedrich Merz, and French President Emmanuel Macron all mentioned as candidates.

For now, Belgium finds itself more isolated than ever, caught between the urgent needs of a war-torn Ukraine and the concrete financial risks of retaliation on its own soil. The question is not whether the debate over frozen Russian assets will return — but whether the EU can find a solution that satisfies both Ukraine’s funding needs and Belgium’s legitimate security concerns.