The European Union (EU) is debating two different methods for using frozen Russian assets, according to sources cited by the Financial Times (FT). The funds are intended to back reparation loans for Ukraine totaling €170 billion. Euroclear Assets as Collateral One option involves using funds held at the Belgian central securities depository Euroclear. Brussels could purchase zero-interest EU bonds, using the Russian assets as backing. Sources note that approximately €170 billion of the original €194 billion has already matured and now exists as cash balances on Euroclear’s accounts. The capital raised could then be transferred to Ukraine in tranches. Special Financing Instrument The second option under discussion is the creation of a special financing instrument designed to manage these funds. This would allow non-EU states to participate in Ukraine’s recovery program, broadening international support beyond the bloc.