Photo credit: PTI
BRUSSELS: The European Union (EU) on Friday indefinitely froze Russia’s assets in Europe to ensure that Hungary and Slovakia, both with Moscow-friendly govts, can’t prevent the billions of euros from being used to support Ukraine. Using a special procedure meant for economic emergencies, the EU blocked the assets until Russia gives up its war on Ukraine and compensates its neighbour for the heavy damage that it has inflicted for almost four years.EU Council President António Costa said European leaders had committed in Oct “to keep Russian assets immobilized until Russia ends its war of aggression against Ukraine and compensates for the damage caused. Today we delivered on that commitment.”
It’s a key step that will allow EU leaders to work out at a summit next week how to use the tens of billions of euros in Russian Central Bank assets to underwrite a huge loan to help Ukraine meet its needs over the next two years. “Next step: securing Ukraine’s financial needs for 2026–27,” added Costa, who will chair the summit on Dec 18.The move also prevents the assets, estimated to total around € 210 billion, from being used in any negotiations to end the war without European approval. A 28-point plan drafted by US and Russian envoys stipulated that the EU would release the frozen assets for use by Ukraine, Russia and the United States. That plan, which surfaced last month, was rejected by Ukraine and its backers in Europe.Hungarian PM Viktor Orbán – Russian President Vladimir Putin’s closest ally in Europe – accused the European Commission “of systematically raping European law.”Belgium, where Euroclear is based, is opposed to the “reparations loan” plan. It says that the plan “entails consequential economic, financial and legal risks,” and has called on other EU states to share the risk. Russia’s Central Bank, meanwhile, said Friday that it has filed a suit in Moscow against Euroclear for damages it says were caused when Moscow was barred from managing the assets. Euroclear declined to comment.