Russian assets permanently frozen. This is the end of the Hungarian veto and a historic breakthrough in the EU

EU countries managed to reach an agreement on Thursday to freeze Russian assets permanently, without the need for a six-month extension with the consent of all capitals, the Danish presidency announced. This brings the Community closer to the decision to use these assets to finance support for Ukraine.

As an EU source told journalists on Thursday, this solution was adopted by a very clear majority of member states. The written procedure was launched on Thursday and will be finalized on Friday at 17.

The countries' consent to the permanent freezing of Russian assets does not determine whether a reparations loan will be granted to Ukraine, financed with their use. However, the decision is seen as a significant breakthrough, bringing the Community closer to this. – Work on financing Ukraine in 2026-27 is still ongoing, the source said.

So far, Belgium has opposed the use of the assets. On Wednesday, Belgian Prime Minister Bart de Wever, in his speech in parliament, drew attention to the serious legal flaws of the solution that the ambassadors accepted on Thursday.

It is about the use of Art. 122 of the Treaty on the Functioning of the EU regarding the provision of financial assistance in emergency situations. The European Commission refers to this article when proposing a permanent freeze of Russian assets.

– This article concerns the state of emergency. Where is this state of emergency? There is a state of emergency in Ukraine. But Ukraine is not in the European Union, de Wever said on Wednesday.

Meanwhile, on Thursday, Belgian Deputy Prime Minister and Finance Minister Vincent Van Peteghem stated that ““at some point” frozen Russian funds will have to be used to finance support for Ukraine. He added that Belgium would not make easy compromises.

Van Peteghem spoke just before the Eurogroup meeting, during which the finance ministers of the euro area countries will elect the chairman of this body. The Deputy Prime Minister of Belgium is one of two candidates for this position, alongside the Greek Kyriakos Pierrakakis.

The solution agreed on Thursday will change the legal basis on which the European Union immobilizes the assets of Russia's central bank. Presenting a legislative proposal on December 3 regarding the use of Russian deposits to finance aid to Ukraine, the European Commission proposed to introduce a ban on their transfer back to Russia. The ban is to be – in accordance with the EC's proposal – established by a regulation, the adoption of which requires only a qualified majority of member states (15 countries constituting 65% of the EU population). The ban, unlike the sanctions that are extended every six months, will be permanent.

The introduction of such a ban will help circumvent Hungary, whose potential veto every six months has raised concerns about whether it will be possible to extend the sanctions imposed by the EU on Russia.

The basis for the solution accepted by the member states on Thursday remains Art. 122 of the Treaty on the Functioning of the EU.

From Brussels Magdalena Cedro (PAP)

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