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EU Approves Emergency Powers to Lock €210 Billion in Russian Assets Indefinitely

The step paves the way for a reparations‑backed loan to Ukraine, with guarantees for Belgium to be settled at next week’s leaders’ summit.

Overview

  • EU ambassadors backed a revised Article 122 plan and launched a written procedure for Council sign‑off to keep about €210 billion in Russian state assets frozen until Russia ends its war and pays reparations.
  • The change replaces six‑month unanimous renewals with qualified‑majority control, sharply limiting the ability of Hungary and Slovakia to block future rollovers.
  • Russia’s central bank filed a lawsuit against Euroclear in the Moscow Arbitration Court over the freeze and said any direct or indirect use of its reserves would be illegal.
  • Belgium and Euroclear oppose using the assets as collateral, and EU governments are preparing state guarantees to shield Belgium and the depository from potential legal or financial claims.
  • EU leaders plan to decide on the reparations‑loan framework for Ukraine at the December 18–19 European Council, with safeguards and the funding structure still under negotiation.