EU wants to freeze Russian assets indefinitely to finance Ukraine loan
Illustrative photo (Getty Images)
The EU is considering an indefinite extension of sanctions on Moscow's state assets, which would alleviate U.S. concerns about using Russian central bank funds to loan Ukraine $50 billion, citing the Financial Times.
Today, ambassadors from the 27 member countries will discuss the European Commission's proposal to "indefinitely immobilise Russia’s central bank assets," according to a document seen by the Financial Times.
This measure would provide G7 partners with predictability regarding the repayment of the $50 billion loan approved last month. The plan is to repay the loan using the profits from these assets.
Currently, the sanctions are renewed every six months, causing concern among the EU's allies about the full repayment of the loan.
The US seeks stronger guarantees from Europe that the €190 billion of assets frozen in Euroclear in Belgium will remain frozen until the loan is repaid or Russia agrees to reparations.
This move comes ahead of the US elections in November, where leading candidate and former President Donald Trump has questioned the continuation of aid to Ukraine, prompting G7 allies to maximize their support for Kyiv by the end of the year.
Loan for Ukraine from Russian assets
Recently, the European Union agreed to transfer the income from frozen Russian assets to Ukraine. The US, in turn, proposed providing Ukraine with a $50 billion loan, using frozen Russian assets as collateral. In June, at a summit in Italy, G7 leaders supported this initiative.
EU foreign policy chief Josep Borrell announced that the European Union would send the first tranche of €1.4 billion from the income of frozen Russian assets to purchase weapons for Ukraine at the beginning of August.
