Italy, Belgium, Bulgaria and Malta have warned the European Commission against using frozen Russian assets to support Ukraine, citing potential risks to the EU’s financial system. In a Politico Europe report, the four countries urged the EU to explore alternative funding options for Ukraine—such as an EU loan facility or bridge solutions—that comply with international law and carry fewer risks.
The European Commission had hoped to secure member‑state approval for a plan to tap frozen Russian assets before the European Council meeting on 18‑19 December. However, some states, notably Belgium, which holds the majority of those assets, expressed concerns that seizing the funds could undermine trust in the EU’s financial system, trigger capital flight and expose members to legal liabilities.
On Friday, the EU invoked emergency powers to extend the asset freeze indefinitely, despite possible vetoes from Hungary and Slovakia. While Italy, Belgium, Bulgaria and Malta supported the measure, they stressed that it did not predetermine the use of the frozen assets, which would require a separate decision at the leaders’ level.
The move drew criticism from Hungarian Prime Minister Viktor Orbán, who called the vote unlawful, and Slovak Prime Minister Robert Fico, who argued that financial support for Ukraine would prolong the conflict with Russia. Russia warned that seizing its assets would amount to theft and pledged retaliation. The Russian Central Bank has launched legal proceedings against Belgian clearinghouse Euroclear, which holds most of Moscow’s foreign assets in Europe.
The dispute underscores the challenges the EU faces in supporting Ukraine while navigating international law and safeguarding its financial system. The European Commission will need to weigh member‑state concerns and consider alternative solutions to meet Ukraine’s financial needs, a topic that is expected to dominate discussions at the upcoming European Council meeting.
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