EU Freezes Russian Assets Indefinitely; Hungary and Slovakia Dissent, Russia Warns Legal Action

Brussels: The European Union on Friday took a big and tough decision on Russia and decided to indefinitely freeze its seized assets worth about $250 billion. The EU has kept a clear condition that until Russia compensates for the damage caused in the Ukraine war, these assets will remain in the same condition. This decision was taken by majority in the group of 27 countries.

Did Hungary and Slovakia fail to stop this decision?

This proposal was openly opposed by Hungary and Slovakia, because both countries have a relatively soft attitude towards Russia. Both said that such a step could create division in the European Union. However, 25 countries approved this proposal on the basis of majority, due to which the opposing countries could not stop it.

How has Russia reacted to this move of the EU?

Russia has termed the decision as a “conspiracy to seize property illegally.” The Russian Central Bank had already warned that it would take legal action if the process went ahead. Russia has indicated that it may file a petition in the court against Belgium, as a large part of the seized assets is kept there.

What are the EU's plans for aid to Ukraine?

The EU has made it clear to Russia that if it does not compensate for the damage caused to Ukraine, its seized assets can be used to provide economic assistance to Ukraine. However, Hungary and Slovakia have also objected to this route. He says that this could affect the unity of the European Union.

Who is overseeing Russian assets, and why is Belgium concerned?

At present, the seized Russian assets are being managed by the Belgium-based organization 'Euroclear.' The Belgian government has expressed concerns about the legal and security risks associated with long-term mortgages or future sales of these properties. For this reason, it has also demanded a security guarantee from its allied countries.

Is the situation worsening even on the battlefield?

Ukraine claims to have recaptured parts of its city of Kupyansk and that Russian troops there are surrounded. On the other hand, Russia attacked the power plant in Ukraine's port city Odessa, causing darkness in the area. Russia also claimed to have shot down 90 Ukrainian drones, some of which were heading towards Moscow.

What new tensions are emerging in NATO and on the maritime front?

The report of Denmark's intelligence agency has claimed that NATO's military strength is weakening due to the decisions of US President Donald Trump. At sea, too, the situation is tense—Russia and Ukraine are attacking each other's ships, causing the scope of the war to seem ever-expanding.