The European Commission on Friday proposed changes to sanctions on Russia to persuade the United States to back a $50 billion loan to Ukraine. The loan would be repaid with profits from frozen Russian assets, most of which are located in Europe. Politico.
The US fears that EU sanctions will be renewed every six months, and that a single member state could block this. The committee has identified three options, including a five-year asset freeze and renewal of sanctions every 36 months. The final decision is taken by EU member states, and Hungary has typically vetoed sanctions packages in the first rounds — although the Hungarian government has so far accepted them all.
The committee proposed three solutions to the problem:
- Option A: A freeze on Russian state assets for five years, subject to review every 12 months. Under this plan, a majority of EU member states would have to decide to lift the asset freeze.
That makes it difficult for a single country — Hungary, the prime suspect among U.S. and European Union officials — to put credit at risk.
- Option B: – Renewing the asset freeze by consensus every 36 months. According to two EU diplomats, this idea has the support of the Commission and most EU countries.
- Option C: The final, and unlikely, idea is to extend the renewal period of all sanctions to 36 months, which would fail not only in Hungary but also in Germany.
According to Politico, the final decision could be taken by the member states of the European Council.
Cover image source: European Union
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