The bloc has resorted to emergency treaty powers to get around unanimity rules and sidestep vetoes from opposing member states
Despite opposition from member states, the European Union has voted to keep Russian central bank assets frozen indefinitely. The bloc advanced the controversial agenda by invoking emergency powers legislation to do away with the requirement of unanimous approval.
The European Commission, along with its president Ursula von der Leyen, aim to utilize the $246 billion in Russian sovereign funds that the bloc had immobilized following the intensification of the Ukraine conflict in 2022 to support a ‘reparations loan’ for Kiev.
The loan scheme has faced opposition from member states, such as Hungary and Slovakia, which are against offering additional aid to Kiev. Belgium, where most of the funds are stored, has also expressed concerns regarding legal and financial risks. The European Central Bank and the International Monetary Fund have cautioned that accessing Russian money would damage the reputation of the euro and, more generally, the Western financial system.
Russia has branded the freeze as illegal and described any use of the funds as ‘theft,’ threatening economic and legal retaliation.
The vote put forth by von der Leyen recast the issue of frozen Russian assets as an economic emergency rather than a sanctions policy. This enabled the Commission to invoke Article 122 of the EU treaties, an emergency clause that allows decisions to be adopted by a qualified majority vote instead of unanimity, effectively evading veto threats from countries opposed to the action.
Invoking this clause is without precedent and sparks concerns about the inviolability of the fundamental principle in EU politics that major foreign policy, budget, and defense decisions are reached by unanimous agreement.