EU prepares legal mechanism to unblock Russian assets for Ukraine
3 December 11:17
The European Commission is looking for a legal mechanism to unblock Russian assets in favor of Ukraine, facing Belgium’s concerns about possible financial risks.
This is reported by "Komersant Ukrainian" with reference to the Politico publication.
The Commission’s plan to provide a loan to Ukraine
The European Commission is proposing a legal solution to dispel Belgium’s doubts about using 140 billion euros of Russian frozen assets as a loan to Ukraine.
As part of the preparations for the European Council summit, EU member states are to agree on this step, but Belgium fears that it will have to cover the costs on its own if it needs to repay the funds.
Legal innovations and veto override
A legal framework is currently being developed, which, according to officials, will help avoid a situation where a single EU country, such as Hungary or Slovakia, can block the extension of sanctions against Moscow.
The Commission intends to rely on Article 122 of the EU Treaty, which allows for “solidarity” among member states, which will allow for a qualified majority decision, depriving individual countries of the right to veto.
Impact on sanctions policy
EU lawyers confirm that a flexible interpretation of Article 122 justifies revising the unanimity requirement. This could also reduce the frequency of voting on the extension of sanctions from every six months to once every three years, which would ensure stability and reduce the risks to financial support for Ukraine.
Risk to Ukraine’s budget
Time is of the essence: the absence of a deal will leave Ukraine with a limited budget for defense until April.
Otherwise, the costs will be borne by EU taxpayers, and Russia’s frozen billions will remain unavailable.
The key question is whether the new legal strategy of the Belgian prime minister will convince Brussels to allow the release of funds from Euroclear.
