Kathmandu, Dec 13: The European Union (EU) has indefinitely frozen $250 billion worth of Russian assets, setting conditions that the funds may be used to compensate for damages caused by the war in Ukraine. These assets will now remain in their frozen state.
Russian assets in Europe can be kept frozen as needed, without requiring a vote every six months, a change announced by Denmark, which currently holds the EU presidency.
Hungary and Slovakia, Russia’s allies, opposed the measure but were unable to block it. The resolution was passed by a majority of 25 EU member states.
Earlier, the Russian central bank had threatened to file a case in Moscow arbitration courts against the EU’s move. This decision falls under Article 122 of the EU treaty, which allows special measures in emergencies.
The European Commission aims to use roughly €200 billion of seized Russian funds since the 2022 invasion of Ukraine to support the country. Under this plan, Euroclear will make the funds available to the EU as a loan, which will then be used to aid Ukraine. The assets will only be returned to Russia once compensation for war damages is paid.
Euroclear, based in Belgium, is responsible for protecting, maintaining, and managing the frozen assets. Belgium has expressed concerns over risks that could arise if the assets are seized or sold and has requested security guarantees from major allied nations.
Hungary criticized the decision as an “unprecedented move based on an incorrect legal basis,” while Russia has accused the EU of plotting to seize its assets illegally. Moscow has warned that it may take legal action against Belgium if the effort is not stopped.
People’s News Monitoring Service
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