EU divisions deepen over Russian asset seizure as legal and financial risks mount |
The European Union’s long-running debate over whether to seize frozen Russian assets to finance Ukraine has entered a more contentious and legally fraught phase. While Brussels continues to search for ways to sustain financial support for Kyiv, growing resistance from within the bloc highlights fears that crossing this legal Rubicon could permanently damage the EU’s financial credibility and expose member states to severe economic retaliation.
According to a Politico Europe report published on December 12, Italy, Belgium, Bulgaria, and Malta have formally urged the European Commission and the European Council to explore alternatives to outright confiscation of frozen Russian assets. In an internal document cited by the outlet, the four countries warned that seizing the assets would carry “significantly higher risks” and could undermine both EU law and international financial norms. Instead, they proposed alternative mechanisms such as EU-backed loan facilities or bridge financing arrangements that would meet Ukraine’s funding needs while minimizing legal exposure.
This internal pushback comes as the European Commission intensifies pressure on member states ahead of the European Council meeting scheduled for December 18–19. The Commission has been eager to lock in political approval for a plan that would move beyond freezing Russian assets toward actively redirecting them to Ukraine. Yet the hesitation of several countries-particularly Belgium, which hosts Euroclear, the clearinghouse holding the bulk of Russia’s immobilized reserves-underscores how high........