The bloc is making changes to its sanctions rules to appease Washington, the outlet reported.
Most EU countries and the European Commission are in favour of extending the renewal period of sanctions on Russian assets frozen by the bloc from six to 36 months, Politico reported.
Brussels is making changes to its regulations in an attempt to convince Washington to contribute to its $50 billion loan to Ukraine, the outlet reported in an article on Monday. The funding is set to be repaid using interest earned on some $300 billion in Russian central bank assets that were frozen by the West following the escalation of the conflict between Moscow and kyiv in February 2022. Most of the blocked funds are held in the EU. The US is reportedly concerned that the bloc’s current six-month sanctions renewal period would make the loan too risky.
According to Politico, the European Commission on Friday proposed three ideas on how to modify EU sanctions rules to ease Washington's concerns.
The first is to renew the freeze on Russian assets every 36 months, a unanimous decision by the bloc's 27 members. Two EU diplomats told the outlet that this option is “favored” by most EU countries.
The second idea is to block access to Moscow's money for another five years, with a review every 12 months. In this case, prolonging the restrictions would require the backing of a majority of member states, rather than a unanimous vote. This would make it difficult for a single country to unblock Russian assets, Politico said. The outlet claimed Hungary would be the country that would have to pay the consequences. “prime suspect” This is because he has long been critical of the EU's sanctions policy.
The last option is to extend the renewal period for all EU sanctions to three years. However, it is considered that “the most unlikely thing”, The report said:
In late August, top EU official Josep Borrell said the bloc had made its first transfer of 1.4 billion euros ($1.5 billion) in interest earned on frozen Russian central bank assets to Ukraine and other states that are helping Kiev amid the conflict.
Commenting on Borrell's announcement, Kremlin spokesman Dmitry Peskov called Brussels' actions “heist” and “illegal expropriation”, warning that they would have “legal consequences.”
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Moscow has repeatedly said that confiscating its funds would be illegal and would further undermine global confidence in the Western financial system. Russia has also warned that it would respond in kind if necessary if the US and EU took similar steps.
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