Majority of EU members support elongating freeze of Russian assets
Date
9/18/2024 7:42:48 AM
(MENAFN) A significant majority of European Union (EU) member states, along with the European Commission, are in favor of extending the period for renewing sanctions on frozen Russian assets from the current six months to a more extended 36 months. This shift aims to enhance the European Union's position as it seeks to secure a USD50 billion loan from the United States for Ukraine, according to a report by Politico.
The proposed changes to European Union regulations are part of a broader strategy to reassure Washington regarding the safety and viability of its investment. The funding is expected to be repaid through the interest accrued on approximately USD300 billion in Russian central bank assets that have been frozen since the conflict between Russia and Ukraine escalated in February 2022. The majority of these blocked funds are held within European Union jurisdictions.
United States officials have expressed concerns that the existing six-month renewal period for sanctions renders the loan too risky for American investors. In response, the European Commission has put forward three proposals aimed at amending the European Union’s sanctions framework to address these worries. The most favored option among European Union diplomats involves implementing a system where the freeze on Russian assets would be renewed every 36 months through a unanimous agreement by all 27 member states.
This strategic adjustment reflects the European Union's commitment to not only support Ukraine in its ongoing conflict but also to align its policies with United States expectations to foster stronger transatlantic cooperation. As discussions continue, the European Union's ability to manage its sanctions effectively will play a critical role in determining the success of its financial support for Ukraine and maintaining unity among its member states.
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