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EU Sets 'Permanent Immobilization' as Key to Using Frozen Russian Assets After Belgium Talks Stall

The Commission signals it may turn to joint EU borrowing to fund a €140 billion Ukraine plan.

Overview

  • An EC document reported by the Financial Times says a legal framework for the permanent immobilization of Russian sovereign assets is the primary precondition for deploying them.
  • Talks with Belgium, where most of the assets sit at Euroclear, were described as constructive yet failed to resolve Brussels’ legal and financial objections.
  • The EC outlines joint EU borrowing as a fallback if member states do not back an asset-secured package, with annual servicing costs estimated at up to €5.6 billion.
  • Belgian Prime Minister Bart De Wever demands full EU risk-sharing for liabilities tied to roughly €210 billion in Russian sovereign assets held in Belgium.
  • EU and G7 measures froze about €300 billion in Russian reserves, with over €200 billion in the EU, and the bloc has already transferred up to €14 billion in 2025 from income on these assets to Ukraine.