Some EU States seek alternatives to seizing frozen Russian assets

(MENAFN) Several EU countries are urging the bloc to consider alternatives to using frozen Russian assets to fund Ukraine, according to reports. Italy, Belgium, Bulgaria, and Malta have reportedly called on the European Commission to explore options that comply with EU and international law while carrying “significantly fewer risks,” suggesting mechanisms like an EU loan facility or bridge solutions.

The European Commission had hoped to gain approval for the plan before the European Council meeting on December 18-19, but opposition from some member states remains strong.

Belgium, which holds the majority of Russia’s frozen assets, has warned that seizing the funds could undermine confidence in the EU’s financial system, provoke capital flight, and expose member states to legal challenges.

On Friday, the EU invoked rarely used emergency powers to make the asset freeze indefinite, bypassing potential vetoes from Hungary and Slovakia. While the four opposing countries supported the measure, they emphasized that the vote “does not pre-empt in any circumstances the decision on the possible use of Russian immobilized assets, which needs to be taken at leaders’ level.”

Hungarian Prime Minister Viktor Orban criticized the move as unlawful, accusing the commission of “systematically raping European law.” Slovak Prime Minister Robert Fico also condemned the decision, arguing that “providing tens of billions of euros for military spending is prolonging the war” between Ukraine and Russia.

Russia has condemned the plan as theft and has threatened retaliation. On Friday, the Russian central bank filed a lawsuit against a European clearinghouse that holds the bulk of its foreign assets on the continent.

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