📰 💶 Estonia faces costs if EU freezes Russian assets indefinitely
The European Council is expected to vote next week on converting the current six-month freeze of Russian assets in the EU into an indefinite regime. The move would allow the EU to use the frozen assets as collateral for a long-term loan to Ukraine, estimated at €100–150bn, backed by around €210bn in immobilised Russian funds.
According to European Parliament member Jaak Madison, if the assets are not ultimately confiscated, EU member states would have to repay the loan from their own budgets. He estimates Estonia’s potential share at €400–450m in a favourable scenario and up to €1bn in a negative one. Madison added that Russia holds far fewer European assets that could be seized in response, with estimates ranging from €20–30bn.
Another Estonian MEP, Riho Terras, said the decision would test Europe’s ability to act as an independent geopolitical actor. He noted that the outcome would largely depend on Germany’s position. Hungary and Slovakia have signalled opposition, while Belgium and Italy have raised legal concerns. Approval requires the support of at least two-thirds of EU member states.
Context:
Since 2022, the EU has frozen Russian state assets under sanctions, renewing the measure every six months due to legal constraints. Making the freeze indefinite would remove renewal risks and enable long-term financial planning for Ukraine, but would also shift part of the financial risk to EU budgets, including smaller member states such as Estonia. The vote reflects a broader EU debate on burden-sharing, legal exposure and the use of sanctioned assets in prolonged conflicts.
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