After Trump-Zelensky blowup, Europe may be more willing to seize frozen Russian assets while EU official says ‘free world needs a new leader'
European leaders expressed support for Ukrainian President Volodymyr Zelensky after getting in a heated argument with President Donald Trump on Friday, raising speculation on what actions they could take to back up their words.
The diplomatic meltdown in the Oval Office sank hopes for a US-Ukraine mineral deal that could have eased the path for more support and an eventual end to the war. Meanwhile, the Trump administration is reportedly considering a halt to all US military aid.
Before the blowup, some European counties were eyeing a massive pot of money: the roughly $200 billion of Russian assets in the EU that were frozen after Vladimir Putin launched his war on Ukraine three years ago.
Interest from those assets are already being used to back an earlier 50 billion-euro loan to Ukraine. But some leaders are concerned about the legality of an outright seizure of Russia's currency, gold, and government bonds, which could also raise doubts about the safety of certain assets across global markets.
Now, the prospect of US aid ending soon could overcome lingering resistance.
"european union now more likely to seize russia's frozen assets, making up for loss of american support for ukraine," Ian Bremmer, president of political risk research and consulting firm Eurasia Group, posted on X on Friday.
That comes as Europe reckons with a possible future without US leadership, including a trans-Atlantic alliance that has been the bulwark of Washington's security shield for nearly 80 years.
The EU's top diplomat, Kaja Kallas, signaled after the Trump-Zelensky shouting match on Friday that Europe will try to fill the void.
"The free world needs a new leader," she said. "It's up to us, Europeans, to take this challenge."
Kallas, a lawyer and a former prime minister of Estonia, has also been a proponent of seizing Russia's frozen assets. In December, she said Ukraine has a legitimate claim for compensation and suggested the frozen Russian assets would help pay the damage Moscow has inflicted.
On Monday, she said one more EU country had switched from opposing an asset seizure to supporting it without naming the member state, but acknowledged the difficulty of getting unanimous approval.
"This is what I have always said: eventually, especially in the situation where we are right now, we all come to the conclusion that our taxpayers should not be the ones who are paying for this," Kallas added. "It should come from the country that destroys Ukraine, which is Russia."
Leaders from Poland, Estonia, and Finland recently added to growing calls for seizure. And on Monday, Czech Prime Minister Petr Fiala joined in, saying Trump is completely transforming US foreign policy.
But the Eurasia Group's Bremmer expressed doubts that Europe will step up its support for Ukraine meaningfully.
"Are the Europeans willing to stand up for themselves, for their principles, for their values, and for fellow Europeans? And I fear the answer is no," he said in a video posted on Saturday. "Analytically, everything we've seen for the last three years is that they're going to talk a really good game and they're not going to do very much. But we shall see. And we shall see very soon because this is the future of the West. This is the future of democracy. And it sure as hell is the future of the Ukrainians."
This story was originally featured on Fortune.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
a minute ago
- Forbes
Buy or Sell UNH Stock Ahead of Its Upcoming Earnings?
CHONGQING, CHINA - JULY 27: In this photo illustration, a smartphone displays the logo of ... More UnitedHealth Group Incorporated (NYSE: UNH), a leading American healthcare and insurance company, in front of a screen showing the company's latest stock market chart on July 27, 2025 in Chongqing, China. (Photo illustration by) UnitedHealth (NYSE:UNH) is set to release its earnings on Tuesday, July 29, 2025. Analyzing the past five years of data, UNH stock has exhibited a trend of positive one-day returns after earnings announcements in 53% of cases. The median one-day gain was 4.0%, with the highest single-day increase reaching 7.2%. While the actual results in comparison to consensus estimates will be vital, comprehending these historical patterns can offer an edge for event-driven traders. There are two primary strategies to leverage this information: Analysts' consensus estimates for the forthcoming quarter anticipate earnings of $4.94 per share on revenue of $111.6 billion. This stands in contrast to last year's quarter earnings of $6.80 per share on revenues of $98.86 billion. The expected contraction in profit margins, as indicated by the lower EPS estimate despite higher revenue, is mainly attributed to escalating medical costs. From a fundamental standpoint, UnitedHealth Group has a current market capitalization of roughly $267 billion. Over the past twelve months, the company generated $410 billion in revenue, reporting $33 billion in operating profits and a net income of $22 billion, showcasing robust operational profitability. That being said, if you're looking for potential upside with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having outperformed the S&P 500 and produced returns exceeding 91% since its inception. See earnings reaction history of all stocks UnitedHealth's Historical Odds Of Positive Post-Earnings Return Here are some insights on one-day (1D) post-earnings returns: Additional data for recorded 5-Day (5D) and 21-Day (21D) returns post earnings are detailed along with the statistics in the table below. UNH 1D, 5D, and 21D Post Earnings Return Correlation Between 1D, 5D, and 21D Historical Returns A relatively less risky approach (although not effective if the correlation is low) is to comprehend the correlation between short-term and medium-term returns following earnings, identify a pair that has the highest correlation, and execute the appropriate trade. For instance, if 1D and 5D reveal the highest correlation, a trader can position themselves "long" for the next 5 days if the 1D post-earnings return is positive. Below are some correlation statistics derived from the 5-year and 3-year (more recent) history. It is worth noting that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns. UNH Correlation Between 1D, 5D and 21D Historical Returns Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors. Additionally, if you desire upside with a more stable experience than an individual stock like UnitedHealth, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its launch.
Bloomberg
a minute ago
- Bloomberg
Short Sellers Rack Up $2.5 Billion Loss on Riskiest US Stocks
It's been a brutal month for traders shorting the riskiest US stocks, and as animal spirits imbue retail investors with boundless confidence, strategists expect the misery to continue for bears. As of Thursday, investors had lost $2.5 billion in July betting against the 50 US-listed stocks with the highest short interest, according to data from S3 Partners. Doubting the hype in those firms, which include meme-stock darling Kohl's Corp., produced four times greater losses than the average short in the US market as individual traders have pushed into a number of speculative names.
Bloomberg
a minute ago
- Bloomberg
Indian Refiners Look More Widely for Oil After EU's Russia Curbs
Oil refiners in India, the biggest importer of Russian crude, may be looking at diversifying some buying away from Moscow after fresh European Union sanctions on the Kremlin amid the war in Ukraine. Local processors are exploring options on some inputs, although it's too early to say that they've switched out of typical Russian supply in a major way, according to traders and refinery executives, who asked not to be identified discussing private matters.
