EU looks set to indefinitely freeze hundreds of billions in Russian funds

"The European Union is expected to indefinitely freeze hundreds of billions of Russian funds held in Europe in line with a plan to use the cash to support Ukraine. The bloc's members were expected to approve the plan on Friday to immobilise 210 billion euros ($246bn) worth of Russian sovereign assets for as long as necessary, through a qualified majority vote, instead of voting every six months on extending the asset freeze."

"The 210 billion euros in Russian assets are frozen in Europe as a result of EU sanctions on Moscow over its war on Ukraine, with the vast majority held in Euroclear, a Belgian financial clearing house. The expected decision, which would stay in place until the immediate threat posed by the EU's economic interests subsided, would replace the current arrangement where the freeze on the funds needs to be re-approved every six months unanimously."

"That situation has raised concerns that Hungary and Slovakia, which have closer relations to Moscow than other states and oppose further support to Ukraine, could vote to block a rollover of the sanctions and force the EU to return the funds to Russia. Hungarian Prime Minister Viktor Orban, the Kremlin's closest ally in Europe, railed against the expected decision on Friday, accusing the European Commission, which prepared the measure, of systematically raping European law."

The European Union plans to indefinitely freeze €210 billion in Russian sovereign assets held in Europe to help underwrite a loan supporting Ukraine’s financial and military needs. Members are set to approve immobilisation through a qualified majority vote, eliminating the need for unanimous six-month rollovers. Most of the frozen assets are held in Euroclear, a Belgian clearing house. The measure would remain in place until the immediate threat to EU economic interests subsides and would enable leaders to finalise details at a summit. Hungary and Slovakia have raised concerns and could block extensions, while Viktor Orban publicly criticized the move.

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