European Union representatives reached the decision a day after Belgian Prime Minister Bart De Wever publicly questioned the legality of the European Commission’s proposal to permanently freeze Moscow’s funds under the “state of emergency” clause in Article 122 of the Treaty on the Functioning of the EU.
EU countries agreed to indefinitely immobilize Russian sovereign assets, removing a major obstacle to providing Ukraine with a €210 billion “reparations loan,” Euractiv reports.
Use of Article 122, formally proposed by the European Commission last week, is seen as crucial to preventing Russia from reclaiming assets if sanctions on the Kremlin are lifted - a scenario that could force Belgium to return hundreds of billions of euros to Moscow if the loan is issued. The overwhelming majority of the assets are held at the Euroclear depository.
Currently, sanctions on the assets must be unanimously renewed by EU capitals every six months. Hungary’s leader Viktor Orban has repeatedly threatened to block renewals but has ultimately backed down each time.
One European diplomat said an overwhelming majority of EU countries supported the decision adopted on December 11.
At the same time, Belgium is demanding “autonomous guarantees” from the European Union in exchange for supporting the “reparations loan” backed by Russia’s frozen assets. Until those guarantees are provided, Belgium will block the decision.
EU ambassadors are working to convince Belgium to back the “reparations loan,” as most of Russia’s frozen assets are held by the Belgian depository Euroclear.
Belgian officials say they fear “legal action” from Russia. That’s why the government is demanding “independent and autonomous guarantees” from the EU that would remain in force even if the loan is “invalidated.”
Belgium also wants EU countries to cover potential legal costs if the Kremlin brings a lawsuit against Belgium or other EU states. In addition, Belgium is calling for a halt to new investment treaties with Russia, termination of existing ones, and measures to shield the country from possible “Kremlin retaliation.”
EU ambassadors will discuss the loan on December 12 and 14.
An EU leaders’ summit scheduled for December 18 is expected to deliver a final decision on funding for Ukraine in 2026–2027. Debates continue over the format of that support, while the European Commission promotes the reparations loan as the most effective option.
Earlier in December, the European Union proposed using $105 billion from Russian assets frozen in the EU to cover Ukraine’s economic and military needs over the next two years. U.S. officials urged several EU countries to block the move. They told EU member states these resources would be more effective in securing a peace agreement between Kyiv and Moscow rather than prolonging the war.
Politico also reported that Donald Trump’s peace plan would include returning the assets to Russia after a peace deal is signed. Back in the summer, U.S. officials told the EU’s sanctions envoy David O’Sullivan their plan is to return the assets to the Russians after any peace agreement is concluded.
