EU set to lock up Russia’s frozen assets despite Hungary’s protest, Pg14

Key Highlights:

• The EU is set to lock up Russian assets held in Europe until Russia ends its war in Ukraine and compensates for damages incurred over almost four years.
• This move allows EU leaders to determine how to use tens of billions of euros in Russian Central Bank assets to support Ukraine's financial and military needs for the next two years.
• A total of €210 billion in Russian assets are frozen in Europe, with the majority held in Euroclear, a Belgian financial clearing house.
• Hungary and Slovakia oppose providing further support to Ukraine, with Hungarian Prime Minister Viktor Orbán criticizing the European Commission's decision.

Detailed Insights:

• The frozen assets are a result of sanctions imposed on Russia following the start of the war on February 24, 2022, which require renewal every six months with the approval of all 27 EU member countries.
• Viktor Orbán claims the European Commission is undermining the rule of law to prolong the war in Ukraine, while Slovak Prime Minister Robert Fico fears the use of frozen assets could jeopardize peace efforts.
• Russia's central bank is initiating legal action against Euroclear in response to the EU's steps toward utilizing the frozen funds.
• The EU aims to use these assets to underwrite a substantial loan to assist Ukraine in meeting its financial and military requirements over the next two years, highlighting the ongoing economic and political tensions within the EU regarding support for Ukraine.

Key Concepts Involved:

• Sanctions: Penalties imposed on a country, typically economic, to compel a change in policy.
• Assets: Resources owned by a person or organization that have economic value.
• Rule of Law: The principle that all people and institutions are subject to and accountable to law.