US Opposes EU Plan Using Frozen Russian Assets for Ukraine Aid

The United States has declined to support the European Union's plan to use frozen Russian assets as collateral to finance aid for Ukraine, citing concerns about potential risks to global financial stability. This decision was communicated during the International Monetary Fund meeting in Washington and represents a significant setback for the EU, which aims to raise up to €140 billion through this mechanism. While the UK and Canada have expressed support for the initiative, the US reluctance, despite holding a smaller portion of the assets, carries considerable political weight and may influence other countries' participation. The EU's plan involves issuing bonds backed by frozen Russian assets, which Ukraine would repay only if compensated by Russia, a move Moscow rejects as outright confiscation. The European Commission is preparing the detailed implementation framework, with expectations for approval at the upcoming EU summit, although internal opposition from some EU members and concerns about liability remain. The US stance reflects broader apprehensions about market stability amid geopolitical tensions and a preference not to commit further at this stage.