What's happened
The EU has agreed to immobilize €210 billion of Russian sovereign assets for an indefinite period to support Ukraine and prevent economic disruption. This move replaces the current six-month renewal system and aims to facilitate a loan to Ukraine, with legal and political debates ongoing among member states.
What's behind the headline?
The EU's decision to freeze Russian assets indefinitely marks a significant shift in sanctions policy, aiming to secure long-term financial support for Ukraine. By removing veto power from Hungary and Slovakia, the move reduces the risk of political vetoes that could undermine the plan. However, it risks escalating tensions with Russia, which has called the move illegal and akin to theft. The legal basis, using EU treaty Article 122, grants broad authority but raises questions about the legality and potential repercussions. The plan's success hinges on member states' willingness to support the scheme and Belgium's acceptance of guarantees to mitigate legal risks. This strategy will likely influence future sanctions and financial measures against Russia, with broader implications for EU unity and legal standards in asset freezes.
What the papers say
The Japan Times reports that EU states agreed to immobilize €210 billion of Russian assets for as long as needed, replacing the six-month renewal system. Reuters highlights that this move aims to prevent economic disruption and facilitate a loan to Ukraine, with EU leaders set to finalize details at the December 18 summit. The articles also note opposition from Hungary and Slovakia, which fear damage to the Union, and Russia's rejection, calling the move illegal. The legal basis under EU treaty Article 122 is central to the plan, allowing broad measures to address economic threats. The debate underscores tensions between legal, political, and strategic interests within the EU, with Belgium's cautious stance reflecting concerns over legal repercussions and potential Russian legal action.
How we got here
Following Russia's invasion of Ukraine in 2022, the EU froze Russian sovereign assets as part of sanctions. The new plan seeks to extend the freeze indefinitely using EU treaty provisions, aiming to use the assets to fund Ukraine's military and civilian needs in 2026 and 2027. Belgium, holding most of the assets, remains cautious about legal repercussions and the potential for Russia to challenge the scheme.
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
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Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.
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Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's in