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EU Moves to Approve Long-Term Freeze of Russian Assets to Back Ukraine Loan

Ambassadors plan to invoke Article 122 to shift control to a qualified majority and underpin the Commission’s proposed €210 billion financing package.

Overview

  • EU governments aim to agree on Friday to replace six‑month unanimous renewals with an indefinite freeze of Russian central bank assets using Article 122.
  • Eurostat told treasuries the guarantees backing the €210 billion plan count as contingent liabilities, easing debt concerns for France and Italy.
  • Belgium, where most assets sit at Euroclear, is demanding a larger cash buffer and binding safeguards, and Prime Minister Bart De Wever remains unconvinced ahead of the Dec. 18–19 summit.
  • Hungary opposes shifting the freeze to qualified‑majority control and has rejected eurobond alternatives, prompting diplomats to weigh joint national funding or other fallbacks.
  • Moscow has warned of lawsuits and retaliation if the EU uses or expropriates the frozen funds, and Euroclear’s chief has signaled readiness to challenge the scheme in court.