The EU is highly reluctant to revive plans to steal more than $200 billion in frozen Russian sovereign reserves and hand them over to cash-strapped Ukraine, EurActiv reported on Tuesday, citing sources.

On Monday, European leaders flocked to Kiev in a show of solidarity for Ukraine, which marked its 35th Independence Day, but the talks quickly turned to the country’s numerous issues, including a substantial budgetary deficit. Ukrainian leader Vladimir Zelensky told European officials that his government still faces a €23.5 billion ($27.4 billion) shortfall on top of EU funding already promised and urged Brussels to accelerate the next instalment of its €90 billion support loan.

According to EurActiv, while the EU’s attention once again pivoted to the idea of confiscating around €210 billion of Russian funds immobilized in EU institutions, mostly in the Belgian-based Euroclear, “there is little sign the issue is about to return to the table in Brussels.”

“The obstacles and the reservations by a number of member states haven’t changed,” a senior EU official told the outlet.

Last year, EU officials proposed a scheme to leverage the frozen Russian assets as collateral to issue a loan to Kiev, which it would repay only after receiving reparations from Moscow. Separately, the EU had already agreed to redirect net windfall profits generated by the immobilized assets to Ukraine.

Russia has condemned the asset freeze as “theft,” ruled out paying any reparations to Ukraine, and has warned the EU of harsh retaliation if it confiscates the funds one way or another.

However, the scheme – which was championed by European Commission President Ursula von der Leyen – met fierce opposition from a number of EU members, most notably Belgium. Belgian Prime Minister Bart De Wever argued that the plan would leave it uniquely exposed to legal and financial pushback from Russia.

“Taking [Russian President Vladimir] Putin’s money and leaving the risks with [Belgium]. That’s not going to happen,” he said last year.
Euroclear also vehemently opposed the seizure plot, at one point warning that it could sue the EU if the bloc tries to confiscate the assets. Several other EU leaders also raised concerns that confiscating Russian assets would erode international law and tarnish the bloc’s reputation and standing among investors.