EU to freeze 210bn in Russian assets indefinitely

EU breaks fundamental vote rule to freeze Russian assets indefinitely. The bloc has invoked emergency treaty powers to circumvent unanimity rules to bypass vetoes from opposing member states

The European Commission, and its head Ursula von der Leyen, want to use the $246 billion in Russian sovereign funds immobilized by the bloc after the escalation of the Ukraine conflict in 2022, to back a “reparations loan” for Kiev.

The loan scheme has been opposed by member states, including Hungary, Slovakia, which are against providing further aid to Kiev. Belgium, where most of the funds are held, has also raised concerns due to legal and financial risks. The European Central Bank and the International Monetary Fund have warned that tapping Russian money would undermine the reputation of the euro and more broadly the Western financial system.

Russia has condemned the freeze as illegal and called any use of the funds as “theft,” warning of economic and legal retaliation.

The vote put forward by von der Leyen reframed the issue of frozen Russian assets as an economic emergency rather than a sanctions policy. This allowed the Commission to invoke Article 122 of the EU treaties, an emergency clause that permits decisions to be adopted by a qualified majority vote instead of unanimity, effectively bypassing veto threats from countries opposed to the move.

Invoking the clause is unprecedented and raises concerns about the sanctity of the fundamental principle of EU politics that major foreign policy, budget, and defense decisions are made by unanimous consent.

18:13 GMT

Hungarian Prime Minister Viktor Orban has condemned the EU for using a qualified majority vote as “unlawful” and dangerous for the bloc. In a Facebook post, he warned the move would cause “irreparable damage to the Union,” saying Brussels was “stepping over the Rubicon.” He added that Hungary “protests the decision” and will do all it can to “restore a lawful situation.”

18:09 GMT

Belgium, Bulgaria, Italy, and Malta have said they voted in favor of the decision to extend the freeze on Russian sovereign assets indefinitely, according to Reuters.

17:56 GMT

European Commission President Ursula von der Leyen has welcomed the Council’s decision to continue immobilizing Russian sovereign assets indefinitely. In a post on X, she said the step “sends a strong signal to Russia” that as long as its “brutal war of aggression” goes on, its costs will keep rising. She framed the move as a message to Kiev as well, saying the EU wants to ensure Ukraine becomes “even stronger on the battlefield and at the negotiating table.”

https://www.rt.com/news/629387-eu-votes-russian-assets-indefinite-seizure/