On Friday, December 12, the European Union agreed to freeze the assets of the Russian central bank held in the EU indefinitely.
This was reported by 24 Kanal, citing Reuters.
What is known about the use of Russian assets?
Journalists report that the European Union has removed a major obstacle to using these funds to support Ukraine’s defense against Russian aggression.
The EU aims to provide Ukraine with financing and the ability to continue its fight, as it considers the Russian invasion a threat to its own security, the report states.
To achieve this, EU member states plan to utilize a portion of Russia’s sovereign assets that were frozen after Moscow’s invasion of Ukraine in 2022.
According to Reuters, the indefinite freezing of €210 billion in Russian assets, instead of voting every six months, marks the first major step. This eliminates the risk that Hungary or Slovakia could suddenly block the continuation, forcing the EU to return the funds to Russia.
Moreover, the indefinite freezing of assets is expected to help convince Belgium to support the EU plan to use the frozen Russian funds to provide Ukraine with a loan of up to €165 billion to cover its military and civilian needs.
The EU decision was commented on by European Commission President Ursula von der Leyen.
“I welcome the Council’s decision on our proposal to extend the freezing of Russian sovereign assets,” von der Leyen wrote.
According to the official, Europe is sending Russia a clear signal: as long as this brutal and aggressive war continues, the costs for the aggressor country will increase.
Why is Belgium blocking the loan decision?
- Belgium is firmly refusing to agree to the European Commission’s plan to use frozen Russian assets to provide a reparations loan to Ukraine.
- Belgian Prime Minister De Wever fears that his country could be forced to return the money to Russia if Moscow files and wins legal claims over these funds.
- Currently, the Belgian government is demanding additional guarantees from the European Union to avoid legal and financial risks. The country has also sent the EU its list of amendments to the proposal on using billions of Kremlin assets.
