The European Commission is planning to leverage EU Council conclusions from December 2023 to justify using frozen Russian assets to support Ukraine. This would involve a shift in sanctions rules, moving from unanimity to a qualified majority vote, with the aim of utilizing the interest accrued on these assets. The proposal will need widespread support from member states, facing potential opposition from countries like Hungary and Slovakia. Furthermore, concerns from Belgium regarding legal repercussions from Russia and exposure of Euroclear could pose a challenge.
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The European Commission is exploring a mechanism to channel nearly €200 billion in frozen Russian assets toward Ukraine’s reconstruction. This plan involves transferring the assets into a special fund for higher-risk investments to generate greater returns, potentially increasing pressure on Russia and paving the way for future reparations. While immediate confiscation is opposed by many EU members, the initiative, pushed by key figures within the Commission, aims to create a fund modeled on the European Stability Mechanism. The proposal has gained traction, with some countries like Belgium showing increased support, despite concerns about potential financial risks and the burden on EU taxpayers.
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The European Commission stated there are “no objective reasons” to prevent Ukraine from opening the first phase of its accession process, despite Hungarian Prime Minister Viktor Orbán’s continued veto. Orbán, citing the results of a national consultation opposing Ukraine’s membership, maintains his opposition. The Commission highlights Ukraine’s progress on reforms and its readiness to begin negotiations, emphasizing that the process is merit-based. Diplomats are considering decoupling Ukraine’s and Moldova’s bids, but the Commission states its desire to support both countries’ accession.
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Swedish police are investigating suspected sabotage of a damaged undersea telecoms cable in the Baltic Sea, within Sweden’s economic zone. The damaged cable, belonging to Finnish telecom operator Cinia, suffered minor damage to its C-Lion1 fiber-optic link, though service remains unaffected. This incident follows a string of similar outages in the region, prompting increased NATO presence and a European Commission proposal for enhanced undersea cable surveillance and emergency repair capabilities. The Swedish coast guard is assisting in the investigation.
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Facing liability for PFAS pollution in several European countries, Chemours is actively lobbying the European Commission against a proposed ban on the production and use of these chemicals. The company has engaged in numerous high-level meetings with the Commission, exceeding other corporate lobbying efforts. Chemours’ lobbying efforts also include attempts to coordinate with other affected industries to oppose the restrictions. These actions highlight the significant industry resistance to proposed EU-wide PFAS restrictions, with Chemours playing a central role.
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John Q. Hosedrinker