EU agrees to indefinitely immobilise €210B of Russian assets
2 days ago
- #EU sanctions
- #financial reparations
- #Russia-Ukraine war
- The EU has decided to indefinitely immobilise €210 billion in assets of the Russian Central Bank.
- The decision is based on Article 122 of the EU treaties, bypassing the need for unanimity among member states.
- The immobilisation aims to prevent Russia from accessing the funds until reparations are paid to Ukraine.
- The bulk of the assets (€185 billion) is held at Euroclear in Brussels, with €25 billion in private banks.
- The EU seeks to use these assets for a zero-interest reparations loan to Ukraine, despite resistance from Belgium.
- Belgium has set three conditions for agreeing to the reparations loan: mutualisation of risks, liquidity safeguards for Euroclear, and complete burden-sharing.
- If the EU proceeds without meeting Belgium's conditions, the country may mount a legal challenge.
- The EU is also considering issuing €90 billion in joint debt as a backup plan if the reparations loan fails.