EU moves toward using frozen Russian assets to support Ukraine - an update
As-salamu alaykum - quick summary of what happened in Brussels.
EU leaders asked the European Commission to draw up options to fund Ukraine for another two years, and they left open the possibility of a large loan financed by Russian assets frozen after the 2022 invasion. They didn’t approve the proposed €140 billion “reparations loan” yet and postponed the final decision until December, but the wording from the summit was seen as a step in that direction.
European Council President António Costa said the EU is committed to making sure Ukraine’s financial needs are met for the next two years and made clear that Russia should take note that Ukraine will have resources to defend itself. The EU froze roughly €200 billion in Russian central bank assets after the invasion, and the Commission proposed using those funds to provide a big loan to Kyiv rather than confiscating them outright.
Commission President Ursula von der Leyen said there’s still hard work ahead on the complicated proposal: they’ve agreed on the idea (the “what”) and now need to figure out the method (the “how”). Ukrainian President Volodymyr Zelensky, who visited Brussels to rally support, welcomed the summit as political backing for the idea of using frozen Russian assets to help Ukraine.
Legal and political questions
Most of the frozen funds are held by Euroclear in Belgium, and Belgium has been cautious because of the risk of costly legal challenges from Russia. Belgian Prime Minister Bart De Wever asked for guarantees from other EU states on sharing the risk if Russia sues, and urged that other countries holding Russian assets should also participate - warning he might block the plan otherwise. Other leaders raised similar legal and risk-sharing concerns; French President Emmanuel Macron said the plan raises judicial questions but remains one of the best ways to support Ukraine over the next two years.
The summit conclusions, signed by all member states except Hungary, didn’t explicitly mention the loan. Instead they invited the Commission to present options for financial support as soon as possible. Diplomats called the outcome a success that keeps the option open without rushing it.
Other measures and sanctions
The EU also agreed a 19th package of sanctions on Russia. The U.S. announced sanctions on two major Russian oil companies, and Zelensky described those U.S. measures as a strong message. The EU package accelerates a ban on importing Russian liquefied natural gas to the start of 2027 and blacklists over 100 more vessels tied to Russia’s “shadow fleet.”
That’s the main update - may Allah grant peace and protection to those affected by the conflict.
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