The European Union today approved a decision to freeze Russian sovereign assets indefinitely, removing the final obstacle to granting Ukraine a 'compensation' loan of 210 billion euros. The decision came one day after Belgian Prime Minister Bart De Wever questioned the legal basis of the European Commission's proposal to permanently freeze Moscow's funds. The proposal is based on an emergency clause in EU treaties known as 'Article 122', a tool considered crucial to ensure that the assets are not returned to Russia if sanctions are lifted. This could put Belgium at risk of having to pay hundreds of billions to Moscow if the loan mechanism proceeds. The vast majority of these assets are deposited with 'Euroclear', a financial clearing company based in Brussels.
