BRUSSELS — The European Commission is offering a legal fix to allay Belgium’s fears of a nightmare scenario that could unfold if €140 billion in Russian assets frozen in Brussels are used as a loan to Ukraine.
The Commission wants the 27 EU member countries to agree to lend the immobilized billions to Kyiv at a European Council summit this month. Belgium is resisting, however, over concerns it will be on the hook if the cash has to go back to Russia.
Five diplomats and EU officials said a legal framework was now being drawn up to prevent that from happening. A full proposal on the loan is expected on Wednesday.
Belgium's ultimate fear is that if the €140 billion is lent to Ukraine, a single pro-Russian EU country, such as Hungary or Slovakia, could veto the renewal of the EU's sanctions regime against Moscow. That would require Belgium to immediately return the missing billions to Russia.
The Commission's fix to keep Belgium happy is to prevent individual EU countries from being able to overturn sanctions. Hungarian Prime Minister Viktor Orbán currently has the power to do exactly that, as sanctions require unanimity and must be renewed every six months.