U.S. Moves to Block EU Loan to Ukraine Backed by Frozen Russian Assets

The United States is actively working to block a European Union plan to issue a large loan to Ukraine backed by frozen Russian sovereign assets, according to senior European diplomats cited by Bloomberg.

U.S. officials have privately pressed several EU member states to abandon the initiative, arguing that the roughly $300 billion in immobilised Russian central-bank reserves should instead serve as leverage to secure a peace agreement between Kyiv and Moscow, rather than being used to fund continued fighting.

American diplomats have reportedly told their European counterparts that these assets represent a critical bargaining chip in ongoing peace-talk proposals, including potential joint U.S.–Russian investment frameworks for Ukraine’s post-war reconstruction. The U.S. intervention marks a significant obstacle to Brussels’ efforts to finalise the loan package before the end of the year.