In this document, support for the idea of an indefinite freeze on Russian reserves is noted; however, the states emphasize that this should not imply the anticipation of their use for financing aid to Ukraine. The European Commission insists on an indefinite blocking of assets to avoid the need for unanimous agreement from all EU countries to extend sanctions, which depends on Hungary's position.
At the same time, Italy, Bulgaria, Malta, and Belgium called for continued discussions on safer and more predictable alternatives for supporting Ukraine that would comply with both EU law and international law, and that would carry significantly lower legal and financial risks. Among the proposed options are an EU credit mechanism or temporary solutions that would ensure continuous funding until the scheme is finally approved.
Belgian Prime Minister Bart De Wever has criticized the reparations loan, calling it "principally erroneous" and pointing out potential risks. On Friday, ambassadors from EU countries voted for an indefinite freeze on Russian assets, citing Article 122 of the Treaty on the Functioning of the EU.
The use of this article allows decisions to be made by a qualified majority — 15 countries representing 65% of the EU population, which eliminates the need for unanimous agreement. As Euractiv emphasizes, this mechanism is considered key to preventing the return of Russian assets to Moscow in the event of sanctions being lifted. Otherwise, Belgium, where the majority of the 210 billion euros in frozen funds is held through the Euroclear depository, may face obligations to pay significant amounts to Russia.
However, Hungary and Belgium expressed doubts this week about whether the application of Article 122 could be compatible with EU law. Similar concerns regarding the legality of the scheme and its impact on the financial stability of the eurozone were previously raised by Euroclear and the European Central Bank.
In their joint statement, the countries noted that the use of Article 122 could lead to legal, financial, procedural, and institutional consequences that could be far-reaching, and called for this decision not to be considered a precedent for shaping EU security and foreign policy, where unanimity is traditionally required.
It is expected that on Sunday, EU ambassadors will meet again to discuss the terms of the loan ahead of the upcoming EU Council summit next week. Among other issues, Belgium's proposals will be considered, including the requirement for "independent and autonomous" guarantees from EU states and the condition that Euroclear will not be liable for providing the loan, except in cases of gross violations.
