Italy Supported Belgium on the Issue of Russian Assets 0 9

According to Politico, Italy and Belgium have joined forces to seek an alternative funding option for Ukraine. Both countries, along with Malta and Bulgaria, have prepared a joint statement urging the European Commission and the European Council not to seize frozen Russian assets held in the Belgian depository Euroclear, the publication reported on Friday, December 12, citing an internal document at its disposal.

Four Countries Called for Discussion of Alternative Options

In the statement, the four countries propose to "continue exploring and discussing alternative options in accordance with EU law and international law, with predictable parameters that present significantly lower risks." The authors of the statement urge a focus on Plan B, which involves issuing joint European Union bonds to finance Ukraine in the coming years, Politico further reports.

The publication describes the proposed alternative as problematic, as it would increase the already high debt burden of Italy and France. Additionally, it requires unanimous consent, meaning that such an option could be vetoed by Hungarian Prime Minister Viktor Orban.

At the same time, the support of one of the largest EU countries, Italy, for Belgium's position less than a week before a crucial meeting of EU leaders in Brussels could undermine the European Commission's plan to reach an agreement, Politico notes further.

EU Developing Plan to Use Russian Funds to Aid Ukraine

On December 12, the EU Council temporarily banned the transfer of funds from frozen assets back to Russia. The decision will remain in effect as long as the actions of Russia in the context of the war "pose a risk of further significant deterioration of the economic situation" in the EU. On the same day, the Central Bank of Russia filed a lawsuit against Euroclear in a Moscow court.

Earlier, Germany and other EU countries voted to impose an indefinite ban on the return of Russia's funds frozen in the EU. This step will allow EU countries not to vote on the issue of asset freezing every six months, as has been the case until now.

The European Commission's plan, which is expected to be adopted at the summit on December 18-19, involves using frozen Russian assets to provide loans to Ukraine. The return of money to Russia is planned only if it pays reparations to Kyiv after the war ends.