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EU Push to Use Frozen Russian Assets for Ukraine Collides With Lawsuits and U.S. Warning

Investor lawsuits plus fresh U.S. signals on future aid sharpen EU legal and political risks over tapping the immobilized funds.

Overview

  • Le Soir reports Russian claimants have filed at least €53 billion in cases over the freezes, with 28 actions in European fora and 24 using the ISDS mechanism.
  • Euroclear, which holds a large share of the assets in Belgium, has warned the Commission’s forced-dispossession plan is unrealistic and says it is prepared to challenge it in court.
  • The European Commission’s ‘reparations’ credit proposal for Kyiv, collateralized by the frozen reserves, remains under debate before an EU summit scheduled for December 18.
  • Belgium’s leaders have signaled they will not allow use of the assets for a Ukraine loan without concrete EU guarantees, reinforcing internal divisions over the plan.
  • Politico reported, citing an EU diplomat, that the United States told G7 finance ministers it would scale back support for Ukraine after disbursing the remaining tranches of the $50 billion G7 loan backed by asset returns.