EU may use frozen Russian assets for Ukraine reconstruction

In a statement reported by the Kyiv Post, European Parliament member Radosław Sikorski declared that frozen Russian assets in Europe will not be returned to Moscow. Sikorski suggested these assets should be utilized for Ukraine’s reconstruction or to bolster European defense. This development is part of ongoing discussions within the European Union about the handling of Russian state assets frozen as part of broader sanctions imposed following Russia’s invasion of Ukraine in 2022. The decision to potentially use these assets for Ukraine indicates a significant economic escalation in the EU’s stance against Russia, reflecting a long-term commitment to support Ukraine amidst the ongoing conflict. Key Takeaways Sikorski’s statement appears to indicate a hardening stance by the EU, consistent with scenarios that do not favor a ceasefire agreement between Russia and Ukraine. Market activity suggests a decreased probability of a ceasefire being reached by the end of 2026, with odds currently standing at 23.5% for a resolution by December 31, 2026. The non-return of assets to Moscow could further complicate peace negotiations, suggesting continued tensions in the geopolitical landscape. W...