The Economist: This newspaper supports the seizure of Russian assets

Unless something changes, Ukraine will run out of money at the end of February.

President Donald Trump has cut America’s financial support for Ukraine.

By the end of 2025, Ukraine’s military effort, defined as its defence budget plus foreign gifts of weapons and military grants, will have cost a total of roughly $360bn. 

This year the war effort will require $100bn-110bn, equivalent to about half of Ukraine’s GDP. Ukraine has now borrowed as much as anyone will lend it. 

That leaves Europe.

October 23rd its leaders failed to agree on a loan to Ukraine that would be collateralised by $163bn of frozen Russian assets.

A four-year commitment would cost $390bn, composed almost entirely of donated weapons and cash to finance Ukraine’s budget deficits. 

This is a lot, but still excellent value.

This newspaper supports the seizure of Russian assets, but they are $230bn short of what is needed. 

Given the size of the challenge Europe collectively faces, some sort of joint borrowing would be justified. 

The Economist October 30th 2025 

https://www.economist.com/leaders/2025/10/30/why-funding-ukraine-is-a-giant-opportunity-for-europe

The European Union is increasingly convinced that tapping around €200 billion in frozen Russian central bank assets is the only viable way to put funding for Ukraine on a sustainable footing as other sources of financing run dry.

Several EU member states are gripped by political and budgetary turmoil, even as they try to juggle ramping up spending on their own security.

– Jag uppfattar det som att man utifrån folkrättens principer kan göra det, säger Love Rönnelid, biträdande lektor i folkrätt vid Stockholms universitet.

https://englundmacro.blogspot.com/2025/10/in-frozen-russian-central-bank-assets.html