Ukraine is pressing the European Union to revisit the contentious issue of using frozen Russian state assets to finance its war effort, with Finance Minister Sergii Marchenko proposing a novel solution that would shift custodianship from Belgium to the EU itself.
In an exclusive interview with Europe Today, Marchenko called on the bloc to "think outside the box" and suggested that moving the assets under EU jurisdiction could resolve the legal and financial concerns that have stalled previous proposals.
"We would like a broader coalition of countries to discuss this issue during the next months. It's fair enough to envisage another year of war and that Ukraine (will) need additional sources to finance their needs," Marchenko told our chief EU editor Maria Tadeo.
The call comes as Sweden, Poland, the Netherlands, and Spain have urged the European Commission to revive a previously abandoned plan to channel around €200 billion in immobilised assets—most held in Belgium's Euroclear depository—as a so-called "reparations loan" to Ukraine. Kyiv's financial needs are mounting as the war grinds on.
Belgium has resisted the move, citing concerns over the unprecedented legal and financial risks. But Marchenko argues that transferring custodianship to the EU would mitigate those risks.
"It's a totally different scenario," he explained. "We don't want this money appraised from Euroclear's side. We want this money to be transferred into some accounts which operate under European jurisdiction."
While the idea has been floated informally, it has not yet been officially explored by EU officials. The European Commission has so far shown reluctance to reopen the debate, maintaining that the €90 billion loan agreed by leaders last December should cover Ukraine's financial needs through 2027.
Yet Marchenko insists that Ukraine is in a "totally different reality" as the war intensifies. "We expect a very hard winter," he said. "Escalations mean that we should have the means to survive these escalations."
Estonia's defence minister resigns over arms deal scandal
In related news, the European Commission has confirmed it is recovering European funds linked to a scandal that forced Estonia's defence minister Hanno Pevkur to resign on Wednesday. The resignation followed reports that the government had used up to €70 million from the European Peace Facility (EPF) to purchase artillery shells for Ukraine from companies with no prior track record of producing such weapons.
Pevkur, who said in his televised resignation address that he had not read the paperwork, was at the centre of the controversy. The Commission says it is now recovering the cash through Estonia's main defence investment outfit, the Estonian Centre for Defence Investments. "Recovered funds will be used to fund additional support to Ukraine," an EU spokesperson said.
EU budget talks intensify
Meanwhile, EU affairs ministers are set to advance fraught negotiations on the bloc's next long-term budget at a meeting in Ireland today, according to a document seen by Euronews. The overall size of the envelope and the so-called own resources—which include tax-based revenues—are under discussion. EU ambassadors will gather again next week, with an increasing sense of urgency to bridge the gap between the "frugals" who call for cuts and the "Friends of Cohesion" who want to protect agricultural and regional funds.
In a separate development, France's EU affairs minister Benjamin Haddad has warned that Marine Le Pen is masking her Eurosceptic views ahead of the French presidential campaign. Le Pen, leader of the hard-right National Rally, is currently leading the polls. "The French are deeply pro-European, (and) proud of the role that their country is playing on the European stage," Haddad told our colleague Shona Murray. "Marine Le Pen, for a long time, has been the candidate of Frexit. She's been the candidate of leaving the Euro. She was the candidate of the alliance with Vladimir Putin."
Black Sea blockade raises fears of food crisis and migration
Europe is bracing for a potential crisis as Russia's war in Ukraine imposes a new blockade on the Black Sea, choking off a vital trade route. "In the Black Sea, Russian strikes on grain ships could cause another worldwide food security shock," said EU High Representative Kaja Kallas.
Since July, Moscow has ramped up attacks on Ukraine's ports and vessels, severely hampering its ability to sell grain to global clients such as Egypt, Algeria, Tunisia, Yemen, and Indonesia. Kyiv has responded with drone and missile strikes against Russian ships and hubs. The escalation coincides with the peak of the harvest season, leaving scores of maize, barley, and wheat piling up inside Ukraine.
While exporters can resort to alternative routes by train, land, and the Danube, the maritime corridor remains crucial. The blockade risks spiralling into a manifold crisis that decimates Ukraine's public revenues, puts European assistance under extreme pressure, raises global food prices, and triggers a new migration wave towards the continent. For more on the stakes, see our analysis on Russia's escalating attacks.
