Overview
- European Commissioner Valdis Dombrovskis said the Commission has presented legal justifications and guarantees intended to protect EU financial institutions holding Russian assets from lawsuits by Moscow.
- The working design would not confiscate Russian state assets and affirms sovereign immunity, keeping funds frozen under sanctions while using their economic value to back financing.
- EU legal services have proposed using Article 122 to make the freeze more durable and potentially shift renewals to qualified majority voting, a novel approach likely to face court challenges.
- The package envisions two streams—defense production and procurement plus budget support—with Ukraine obliged to repay only if Russia pays reparations, alongside reform conditionality.
- Belgium, home to Euroclear, continues to object and has threatened legal action over risks and guarantees, as EU leaders target a decision at the December 18–19 European Council with G7 partners working on near‑term funding coverage.