Russian state media spread unverified claims this week that Europe threatened to dump US Treasury bonds over Ukraine, while actual disputes between Washington and Brussels center on control of 210 billion euros in frozen Russian assets.
Pravda EN published the claim on December 6, citing Russian military commentator Alexey Zhivov. The claim has been picked up and shared elsewhere, but major Western news organizations have not corroborated the assertion, and EU officials have announced no plans to sell Treasury holdings.
However, real tensions do exist. The Trump administration has lobbied EU countries to block European plans to use frozen Russian assets for a Ukraine loan, Bloomberg reported, citing European diplomats.
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Europe holds approximately 210 billion euros in frozen Russian central bank assets. The Trump administration wants these assets to help broker a peace deal rather than fund Ukraine’s war effort.
A US-backed peace proposal divides the frozen assets into two investment vehicles where both nations would gain financially, according to Euronews. European officials view the 28-point plan as heavily favoring Russia.
The EU responded by accelerating its own plan to lend Ukraine up to 140 billion euros using assets held primarily in Belgium. Ukraine would repay only after Russia pays war reparations.
“This reparations loan will contribute positively to peace negotiations because it makes very clear that we are in for the long haul with Ukraine,” European Commission President Ursula von der Leyen said at a December 3 press conference.
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Former Estonian President Toomas Hendrik Ilves described widespread European anxiety about US policy direction to NBC News. European officials have complained about exclusion from direct Trump administration negotiations with Russian President Vladimir Putin.
At a December 4 emergency meeting, EU foreign policy chief Kaja Kallas disputed US claims that Russia was making concessions. “Russia is not winding down, but ramping up,” Kallas said.
Going back to the alleged threats, financial markets show no indication that European entities are preparing to sell Treasury holdings. Japan holds more than $1 trillion in US Treasury securities, followed by China at $760.8 billion and the United Kingdom at $740.2 billion, according to Treasury Department data.
Related: Japan’s Kato Says US Debt Holdings Give Tokyo Potential Leverage
A similar unverified claim earlier this year alleged Canadian Prime Minister Mark Carney orchestrated a Treasury sell-off with EU and Japanese leaders to pressure the Trump administration on tariffs. Fact-checking organization Snopes investigated and found no confirmation of the allegation, which originated from a Canadian political commentator’s newsletter.
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