Overview
- Member states are rushing Article 122 legislation to make the freeze indefinite and allow decisions by qualified majority to curb the risk of a Hungarian veto.
- The Commission plan would underpin a reparations-style loan for Ukraine with the immobilised reserves, starting with €90 billion over two years, most of which are held at Belgium-based Euroclear.
- Belgium has submitted amendments seeking a new cash buffer financed by Euroclear’s windfall profits, higher guarantees, and coverage for legal costs and lost revenue to protect against retaliation.
- Euroclear and Belgian officials argue that using frozen, not seized, assets poses legal risks and want liability protection if Russia sues or sanctions are lifted.
- EU leaders aim to decide at the Dec. 18–19 summit as Ukraine faces a budget shortfall by April, with fallback borrowing or national contributions required if the assets plan falters.