EU prepares to extend freeze on Russian assets to unblock loan to Ukraine
The European Union is ready to agree on a decision to extend the freezing of Russian assets through emergency mechanisms. This should be a key step in implementing the plan to provide Ukraine with a ninety billion euro loan. The proposal was presented by the European Commission on Thursday, after which the Permanent Representations of the EU countries preliminarily supported the document. The final decision is expected on Friday. It is reported by The Public with reference to Bloomberg.
The current sanctions regime requires unanimous renewal every six months, which allows Hungary or another country to block the process and open the way for Russia to recover assets. The new scheme stipulates that the extension of the freeze will be approved by a qualified majority. This effectively guarantees that around two hundred and ten billion euros of Russian funds will remain under EU control.
Most countries support the approach, although Hungary is strongly opposed and has even threatened to block other sanctions decisions. The agreement should remove the main reservations of Belgium, which fears that in the event of a sudden unfreezing, it will be responsible for the loan, as the lion's share of assets is held in the Belgian Euroclear. Brussels is demanding legal guarantees and protection mechanisms.
EU leaders are seeking to approve the loan at a summit in Brussels on eighteenth December. According to the plan, the money is to cover Ukraine's basic needs for two years and will be returned only after Russia compensates for the damage it has caused. Kyiv emphasises that it needs new resources in the spring.
German Chancellor Friedrich Merz called Russian assets Europe's most powerful leverage and said the process could move forward as early as this week.
