European Union countries decide to freeze Russian sovereign assets indefinitely

Today, European Union countries approved a decision to freeze Russian sovereign assets indefinitely, in a move that removes the last obstacle to granting Ukraine a “compensation” loan worth 210 billion euros.

The decision came one day after Belgian Prime Minister Bart de Wever questioned the legal basis of the European Commission’s proposal to permanently freeze Moscow’s funds based on the emergency clause in the European Union treaties known as “Article 122”, which is a tool considered crucial to ensuring that assets are not returned to Russia if sanctions on Russia are lifted, which could put Belgium facing an obligation to repay hundreds of billions to Moscow if the loan mechanism goes ahead, knowing that the overwhelming majority of those assets are Deposited with Euroclear, the Brussels-based financial clearing company.