The finance ministers of the EU countries have agreed on an approach whereby Russian state assets will no longer be frozen temporarily, but indefinitely. This is intended to prevent the measure from having to be politically extended repeatedly.
This concerns approximately 210 billion euros in assets of the Russian Central Bank held in bank accounts within the European Union. These assets were already frozen and will now remain permanently out of Russia's reach.
A large portion of that amount, about 185 billion euros, is held in accounts at the financial institution Euroclear. This institution thus plays a key role in the implementation and legal consequences of the EU decision.
The now proposed permanent freeze is intended to enable a loan or financial support mechanism for Ukraine. The EU itself does not want to disburse the money but uses the freeze as the basis for that support.
There is division within the European Union over this. Several EU countries have expressed concerns about the legal sustainability of this approach and warn of potential risks.
Russia has announced it will take legal action against the measure and against Euroclear. This announcement increases the tension surrounding whether the EU plan will hold up in court.
The European Commission states that the proposal is legally solid and resilient to lawsuits. According to the Commission, it remains within the applicable EU framework and does not violate fundamental rules.
EU leaders will discuss the proposal at their summit on December 18. It is still unclear how any legal proceedings will turn out and what consequences they will have for the implementation of support to Ukraine.