Controversy erupts as the European Union agrees to freeze Russian assets indefinitely.

(CLO) On December 12, the European Union (EU) agreed to indefinitely freeze Russian assets in Europe to ensure financial support for Ukraine.

The EU wants to continue providing financial support to help Ukraine sustain its fight against Russia. To do this, EU countries plan to use some of Russia's sovereign assets that they froze after the Russia-Ukraine conflict began in 2022.

The first major step, which EU countries agreed upon on Friday, is to freeze 210 billion euros worth of Russian state assets indefinitely, instead of holding a six-monthly vote as is currently the case.

This eliminates the risk that Hungary and Slovakia, two countries with better relations with Moscow than other EU countries, might refuse to extend the aid freeze at some point, forcing the EU to return the money to Russia.

The headquarters of Euroclear, a Belgian company that holds 185 billion euros of Russian assets frozen in Europe. Photo: CC

Freezing Russian assets: Legal challenges and risks of counterproductive results.

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The indefinite freezing of assets also aims to persuade Belgium to support the EU's more ambitious plan to seize and use frozen Russian cash to lend Ukraine up to 165 billion euros to cover military and civilian budget needs in 2026 and 2027.

The European Council will meet on December 18 to finalize the details of this plan, including assurances from all EU countries that Belgium will not bear the full cost if Moscow's potential lawsuit is successful.

Earlier, Ukrainian President Volodymyr Zelenskyy will arrive in Berlin on December 15th for talks with German Chancellor Friedrich Merz. Other European, EU, and NATO leaders will join the meeting later, according to the German government.

Ukrainian Prime Minister Yulia Svyrydenko, in a post on the English-language social media platform X, hailed the decision as "a landmark step toward justice."

Concerns within the EU and opposition from Russia.

Danish Finance Minister Stephanie Lose, whose country currently holds the rotating EU presidency, told reporters that "some concerns" still need to be addressed but "hopefully we will be able to pave the way for a decision at the European Council next week."

However, Hungarian Prime Minister Viktor Orban said on Facebook that he believed the EU's proposal to freeze Russian assets indefinitely – which requires the support of 15 of the 27 member states to pass – would cause irreparable damage to the bloc. He said Hungary would do everything possible to "restore the rule of law."

The Russian central bank said the EU's plan to use its assets was illegal and reserved the right to use all available measures to protect its interests.

The Russian central bank also said it is suing Euroclear, a Brussels-based securities depository that holds €185 billion of the total frozen assets in Europe, in a Moscow court over the matter.

Euroclear has faced lawsuits from Russia in Moscow courts since the EU froze Russian assets in the company in 2022.

Source: https://congluan.vn/tranh-cai-khi-lien-minh-chau-au-nhat-tri-dong-bang-vo-thoi-han-tai-san-cua-nga-10322418.html