BRUSSELS, Sept 13 (Askume) – The European Commission proposed to EU ambassadors three new possible ways to extend restrictions on Russia’s central bank assets, EU diplomats said on Friday.The change is crucial to securing a $50 billion G7 loan for Ukraine.
In June, leaders of the Group of Seven major democracies and the European Union agreed that interest on assets seized by Russia would be used to fund a G7 loan to Ukraine to help it avoid a massive invasion by Moscow.
G-7 members hold about $300 billion in assets, most of which is held in Europe with the Belgian securities depository Euroclear.
To secure the loan, the G7 wants to ensure that EU sanctions on assets are not lifted. Diplomats said the committee had already discussed three options with the United States.
“Possible options were raised this morning… and have been discussed with the United States,” one diplomat said.
The US representative to the EU in Brussels did not immediately respond to a request for comment. A spokesman for the committee declined to provide details.
Sanctions against Russia require a unanimous vote by the EU’s 27 member states and are updated every six months. Renewals are sometimes used as an opportunity for bargaining; Hungary’s leader Viktor Orban has blocked funding and legislation aimed at helping Ukraine in the past.
The renewal package was presented to ambassadors on Friday. Three EU diplomats said the first option would freeze assets for five years, subject to review every 12 months, and require a majority of European countries to be eligible to release the assets.
“Another option would be to continuously renew the asset freeze every 36 months,” he said. “A third option would extend the continuation of all Russia-related sanctions from the current six months to 36 months.”
EU countries and the European Commission have been discussing options for extending restrictions since the commission first circulated informal proposals in July .
Another diplomat said: “Overall, this morning’s meeting was very constructive and positive. The general feeling in the room was that member states now want to find a way forward.”
