EU Proposes Legal Framework to Address Belgian Concerns Over Using Frozen Russian Assets for Ukraine Loan
The European Commission suggests a legal mechanism to prevent Belgium from bearing financial responsibility if frozen Russian assets are loaned to Ukraine and sanctions are lifted.
The European Commission is proposing a legal framework to address Belgium's concerns regarding the use of approximately €140 billion in frozen Russian assets as a loan to Ukraine. Belgium fears potential financial liability if these assets are loaned to Kyiv and subsequently need to be returned to Russia, especially if an EU member state vetoes the renewal of sanctions.
To mitigate this risk, the Commission plans to invoke Article 122 of the EU treaty, which allows for decisions to be made by a qualified majority in situations of economic urgency. This approach would prevent a single member state from unilaterally overturning sanctions, thereby safeguarding Belgium from immediate repayment obligations.
The Commission's proposal aims to secure Belgium's support by ensuring that the financial burden is shared among member states and that the sanctions regime remains robust. A full proposal on the loan is expected to be presented on Wednesday.
Time is critical, as failure to reach an agreement could leave Ukraine facing a financial shortfall by April. The alternative would require EU taxpayers to shoulder the cost of Ukraine's war efforts while Russian assets remain frozen and unused.
Source
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