Hill urges immediate confiscation of frozen Russian funds to support Ukraine’s recovery and deterrence
Senior US Congressman French Hill has sharply criticized the European Union for failing to seize approximately €258 billion in frozen Russian state assets to fund Ukraine’s recovery, describing the indecision as a lack of political will amid a historic crisis.
In a column published on July 7 in the Financial Times, Hill — chair of the House Financial Services Committee — condemned the outcomes of the latest European Council meeting held on June 26 in Brussels, where EU leaders once again discussed long-term support for Ukraine but refrained from authorizing the confiscation of Russian state reserves currently immobilized in European jurisdictions.
Hill called on both the EU and the United States to take decisive steps, warning that without bold action, the West risks undermining its credibility and emboldening future aggressors.
$500 billion in war damages, trillions at stake
The total estimated losses from Russia’s full-scale invasion of Ukraine exceed $500 billion, with long-term reconstruction, compensation, and environmental damage likely to push that figure into the trillions. Despite this, there is currently no legal mechanism in place to compel Moscow — either under Vladimir Putin or any future government — to pay reparations.
Hill emphasized that the assets needed to begin Ukraine’s recovery already exist in the form of frozen Russian funds, but have yet to be mobilized. Belgium, as the jurisdiction holding the largest share of these assets, has faced increasing pressure to take the lead in authorizing transfers to Kyiv.
So far, Ukraine has received around €28 billion in revenues derived from interest accrued on these frozen funds, primarily from accounts in Western banks. While a significant step, Hill argues that interest alone is “clearly insufficient for a country bleeding on the frontlines of democracy.”
Call for a global trust fund and full-scale transfers
Hill laid out a three-step action plan:
- Segregate frozen Russian assets into clean escrow accounts and place them under fiduciary management for Ukraine’s benefit.
- Establish a dedicated international trust fund for Ukraine, led by the European Council.
- Begin transferring the bulk of Russia’s immobilized assets to Ukraine, either via existing EU financial instruments or through the World Bank.
According to Hill, the immediate transfer of these assets could dramatically strengthen Ukraine’s defensive capabilities and improve its leverage in any future peace talks with Moscow — talks that, unlike past efforts, must be grounded in actual accountability and deterrence.
Test of resolve and the international order
The US Congressman stressed that transferring the frozen assets would send a powerful global message: that military aggression and the violation of the UN Charter will not go unpunished. Conversely, continued hesitation could set a dangerous precedent by signaling that autocratic regimes can evade consequences for war crimes and illegal invasions.
Hill’s appeal comes amid growing but still tentative political support within the EU. Leaders in France and Germany have expressed verbal readiness to consider full use of the assets, but concrete steps remain elusive.
The column in Financial Times calls on former US President Donald Trump to endorse the immediate transfer of $5 billion in frozen Russian central bank reserves currently held in US accounts to Ukraine — a move that would mark a major policy signal ahead of the 2024 US presidential election.
Supporters of the plan argue that seizing and transferring Russia’s frozen funds would not only serve justice but also inject urgently needed resources into Ukraine’s wartime economy and post-war recovery, especially as external aid faces increasing domestic pressures in Western democracies.
