EU Moves Toward Permanent Freeze of Russian Funds

The European Union is poised to approve a plan that would permanently block access to Russian central bank assets held across the bloc, a major step that could pave the way for channeling financial assistance to Ukraine as it continues to resist Moscow’s invasion.

By Friday afternoon, EU member states were expected to endorse the measure through a qualified-majority vote. 

The proposal seeks to lock down approximately €210 billion (about $246 billion) in Russian sovereign reserves, ensuring the assets remain inaccessible for as long as necessary to protect the EU’s economic stability.

The new freeze, which would stay in place “until there is no longer an immediate threat to the economic interests of the Union”, will replace the current system which requires a roll-over of the freeze every six months by unanimity.

This will remove the risk that Hungary and Slovakia, which have better relations with Moscow than other EU states, could refuse to roll over the freeze at some point forcing the EU to return the money to Russia.

Hungarian Prime Minister Viktor Orban said in a post on Facebook he believed the EU move would “cause irreparable damage to the Union.”

“Hungary protests against this decision and will do everything it can to restore a lawful state of affairs,” Orban wrote.

Source: Reuters