Using frozen Russian assets to fund Ukraine "the only viable option", says Dutch FM | DW News

Key Concepts

• NATO's Support for Ukraine: Alliance's commitment to providing financial and military aid.
• Frozen Russian Assets: Proposal to use immobilized Russian funds to support Ukraine.
• Pearl Program: NATO initiative for European countries to purchase US-made weapons for Ukraine.
• Hybrid Threats: Non-military tactics used by adversaries, such as disinformation and cyberattacks.
• Burden Sharing: Equitable distribution of financial and military contributions among NATO allies.

NATO's Latest Efforts to Support Ukraine

NATO's commitment to Ukraine remains steadfast, with a majority of member states agreeing to provide nearly €3.5 billion in new aid. This commitment was reiterated at a meeting in Brussels where alliance foreign ministers agreed to purchase vital US-made equipment, including air defense systems. This initiative, known as the "Pearl" program, aims to ensure Ukraine receives top-quality equipment and encourages European countries to increase their defense spending and take primary responsibility for supporting Ukraine. Germany, Poland, and Norway have already contributed to a $500 million package, with Norway also contributing to another package supported by the Netherlands. These contributions are made in $500 million tranches to acquire the weapons Ukraine requires.

European Union's Plan for Frozen Russian Assets

Concurrently, the European Union is planning to utilize frozen Russian assets to support Kyiv. European leaders believe this move would demonstrate solidarity and impose costs on Moscow for its continued aggression. European Commission President Ursula von der Leyen has proposed using €90 billion in cash balances from immobilized Russian assets within the EU. These funds would be provided to Ukraine as a loan, with repayment contingent on Russia eventually paying reparations for the damage caused. Von der Leyen estimates that this, combined with other international contributions, could finance Ukraine for two years.

Resistance to the Frozen Assets Proposal

While this proposal is popular with many European governments, Belgium, where most of the Russian assets are held, has expressed strong reservations. Belgian Foreign Minister Maxim Vervoort considers the reparations loan option "the worst of whole," fearing that Moscow could reclaim the cash or hold Belgium liable. Belgium demands full coverage for any risks it faces as a result of this scheme. Despite this resistance, the EU aims to settle this complex legal issue by the next EU summit on December 18th. The European Commission is working to reassure Belgium that it would not be held responsible if Russia were to reclaim the funds.

Impact of Moscow Meeting on Brussels Discussions

The NATO ministerial meeting in Brussels occurred shortly after US and Russian delegations met in Moscow without making any apparent progress on a peace plan for Ukraine. This lack of breakthrough in Moscow was palpable in Brussels, with many ministers acknowledging their skepticism about Russia's intention to cease its full-scale war. NATO Secretary General Jens Stoltenberg emphasized the need for NATO to reinforce its own security while continuing its support for Ukraine, indicating that the war is far from over.

The Pearl Program: A Deeper Dive

The Pearl program, devised over the summer by NATO Secretary General Mark Rutte and the Trump administration, is a crucial component of military support for Ukraine. It allows European countries to fund the purchase of US weapons, ensuring Ukraine receives high-quality equipment and aligning with the US call for Europeans to invest more in their own defense and take the lead in supporting Ukraine. The program prioritizes Ukraine's specific requirements. The Netherlands, along with Norway and Germany, has announced an additional €250 million contribution to a Pearl package. The number of nations participating in Pearl packages has reportedly risen from around 20 to potentially 24 or 25, indicating a gradual improvement in burden-sharing. These packages provide essential munitions, air defense systems, and equipment for F-16s, directly contributing to saving civilian lives.

Addressing Hybrid Threats

The discussion also touched upon hybrid threats, with Dutch Foreign Minister David Van der Wal emphasizing that the best defense against such threats is a robust conventional defense. While NATO is a defensive alliance and will not engage in unprovoked aggression, it must guard against disinformation, share information on drone sightings, and improve attribution capabilities, as seen in the Polish railway sabotage incident. This would enable stronger messaging and better defense against hybrid threats. Regarding cyber actions, Van der Wal noted that while NATO has a common cyber response and attribution mechanisms, decisive actions in cyberspace often occur outside the NATO mandate and are undertaken by sovereign nations.

Conclusion and Key Takeaways

NATO and the EU are intensifying their support for Ukraine through significant financial and military aid packages. The proposed use of frozen Russian assets, while facing Belgian opposition, represents a potential "game-changer" in financing Ukraine's defense and recovery. The Pearl program is a concrete mechanism for European allies to procure essential US-made weaponry for Ukraine, fostering greater burden-sharing. Despite the ongoing challenges and the lack of immediate peace prospects, the commitment from NATO and the EU to support Ukraine remains unwavering, with a focus on strengthening defense capabilities and increasing pressure on Russia. The need for continued and potentially doubled support in the coming year is highlighted, emphasizing the long-term nature of the commitment.