EU's Bold Plan: Freezing Russian Assets for Ukraine Support

The EU plans to freeze Russian central bank assets indefinitely to finance Ukraine's defense against Russia. This move eliminates the need for periodic renewals and prevents vetoes from pro-Russia countries. Belgium's legal concerns are addressed with EU guarantees. Leaders will decide on financing Ukraine soon.

The European Union is taking decisive steps to ensure Ukraine remains financially supported against Russian aggression by indefinitely freezing Russian central bank assets immobilized in Europe. According to EU diplomats, this move eliminates the current requirement for a biannual vote, bolstering Ukraine's resilience beyond 2026.

Central to this strategy is a proposed loan using Russian sovereign assets within the EU. Guided by Article 122 of the EU treaty, the European Commission aims to address the economic instability caused by Russia's invasion and prevent further deterioration of the EU economy. The provision allows member states to take necessary measures by a qualified majority vote.

Belgium, which holds a substantial portion of the frozen assets, has shown skepticism about the plan, worrying about potential legal repercussions if the sanctions state is lifted. To alleviate these concerns, the EU has proposed guarantees to cover any financial liabilities Belgium might incur. EU leaders are set to deliberate this strategy during their December summit as they finalize the plan to finance Ukraine for the coming years.

(With inputs from agencies.)