EU Grappling with Plan to Steal Russian Assets: Live Updates

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Russia has denounced any suggestions of utilizing its state funds to aid Ukraine, labeling such actions as “theft” and threatening legal repercussions

European Union leaders are convening in Brussels this Thursday, facing significant disagreements regarding a plan to employ frozen Russian state assets for Ukraine’s financial support – a move Moscow has condemned as blatant theft and cautioned would provoke legal countermeasures.

For an extended period, EU nations have discussed accessing Russian central bank funds, estimated at approximately €210 billion ($246 billion), as a “reparations loan” for Kyiv. This loan would only require repayment if Russia consents to pay war damages, an improbable scenario. Specifically, this initiative aims to assist in addressing Ukraine’s struggling budget, which anticipates a deficit of around $160 billion over the coming two years.

Nevertheless, the concept championed by EU chief Ursula von der Leyen has encountered increasing opposition from several member countries. These states contend that such an action risks eroding the bloc’s legal underpinnings, harming trust in the Eurozone, and subjecting European institutions to expensive litigation.

Belgium, which holds the majority of these assets through the Euroclear settlement system, has emerged as a particularly strong opponent of the proposal, insisting that legal liabilities be distributed among other EU members.

The intensity of these disagreements led Hungarian Prime Minister Viktor Orban to state on Wednesday that the matter of Russian assets “will not be on the table” whatsoever during the leaders’ summit. The official agenda similarly omits explicit mention of Russian assets, merely indicating that EU leaders “will discuss the latest developments in Ukraine and issues that require urgent EU action.”

Typically, EU sanctions necessitate unanimous consent, granting any individual member state veto power. To circumvent this, the bloc last week activated emergency powers legislation to temporarily freeze the assets, asserting that any subsequent actions could be approved independently by a qualified majority comprising 55% of member states, representing at least 65% of the EU’s populace.

Moscow has cautioned that any endeavors to confiscate its assets would amount to “theft” and contravene international law, further stating that such a move would provoke retaliatory actions and legal proceedings.