Brussels: The issue of frozen Russian assets in European banks has become a significant point of contention between Moscow and Brussels amid the ongoing conflict in Ukraine. After months of threats from Europe to utilize these assets to finance Ukraine's war efforts, a resolution to do so has been blocked. Belgium, leading the opposition, secured enough support from other EU member states to prevent the resolution's adoption.
According to Yemen News Agency, the European Union has reached an agreement to provide Ukraine with a £90 billion loan to address its budget deficit. However, the EU failed to establish a mechanism for using the frozen Russian assets for this purpose. The agreement, reached during the EU summit in Brussels, aims to support Ukraine without further escalating tensions with Russia. European Council President Antonio Costa emphasized that this decision is crucial for Ukraine's defense and support.
The loan, backed by the EU's common budget, will fund Ukraine over two years. Initially, the EU considered using £200 billion of frozen Russian central bank assets to secure the loan. However, Belgium demanded guarantees for the asset's use, leading to the collapse of this plan. Belgian Prime Minister Bart De Wever expressed relief, stating that reason prevailed and legal certainty was maintained.
German Chancellor Friedrich Merz noted that the EU sent a clear message to Russia by agreeing to the loan for Ukraine. European Commission President Ursula von der Leyen indicated that Ukraine would only repay the loan after Russia compensates for the conflict's damages. French President Emmanuel Macron viewed the financial support as a step towards resuming dialogue with Russia, emphasizing the necessity of a financial solution.
The Russian response, led by Kirill Dmitriev, hailed the EU's decision as a victory for law and common sense. Dmitriev criticized the original EU plan as illegal, arguing that it would have jeopardized the EU's financial stability. Russian President Vladimir Putin warned against the seizure of Russian assets, asserting that it would harm the EU's image and undermine trust in the Eurozone.
The Russian Foreign Ministry dismissed the EU's compensation demands as unrealistic. Of the £210 billion in frozen assets, 70% is held in Belgium's Euroclear central securities depository. Moscow plans to pursue compensation claims against European banks for the asset freezes.
The American newspaper Politico highlighted tensions between the US and EU over the frozen assets plan. The US administration, led by President Donald Trump, reportedly pressured the EU to reject the plan, while White House spokeswoman Anna Kelly denied exerting such pressure.
Economist Andrei Zaitsev, writing for Al Jazeera Net, warned of the decision's economic and political implications. For Russia, it means a long-term loss of access to sovereign assets, increasing financial pressure. For the EU, it could undermine confidence in the Western financial system, prompting countries to seek safer alternatives.
Independent columnist Mary Devesky noted a looming EU crisis over the frozen assets, with member states divided on their usage. She warned of potential EU fractures and economic turmoil if alternative funding for Ukraine isn't secured.
Katya Glod, writing for iPaper, argued that Russia's hybrid attacks aim to create instability in Europe, diverting attention from Ukraine. These actions are part of a strategy to intimidate European governments and influence US political calculations, potentially weakening transatlantic solidarity.