Politico has learned that the European Commission has proposed changing the sanctions extension mechanism.

The European Commission is proposing a change in its approach to extending sanctions against Russia to circumvent Hungary's potential blocking of the decision, Politico writes, citing a document from the EU executive body it has obtained .

The sanctions are extended every six months and require the approval of all EU member states. The EC is proposing a mechanism whereby a qualified majority would be sufficient. This measure is expected to reduce the risk of Budapest vetoing the extension of the restrictions and ensure the "return of Russia's assets."

According to the publication, ahead of the EU Permanent Representatives' meeting, scheduled for September 26, the European Commission has communicated to EU member states the idea of ​​providing Ukraine with a €140 billion loan using frozen assets from the Russian Central Bank. According to the initiative, the loan will be provided in tranches and used for both defense needs and budget support for Ukraine.

The day before, German Chancellor Friedrich Merz supported the idea, but he stated that the funds should be used exclusively for the purchase of military equipment. Merz stated that the loan would only be repaid once Russia compensates Kyiv for the damage caused by the fighting. The idea of ​​a "reparations loan" was also written about.REUTERS , according to which, the amount at issue was €130 billion. The mechanism “involves replacing Russian assets with zero-coupon bonds issued by the European Commission,” with guarantees either from all EU countries or from those willing to participate.

EU ambassadors will discuss these proposals along with the 19th sanctions package against Russia. It will affect banks, liquefied natural gas, the Mir payment system, and new shadow fleet vessels, according to EC President Ursula von der Leyen.

The Kremlin warned that the West's plans to use both the assets themselves and the interest earned from them would be a "very serious blow to the entire coordinate system of the international financial system," and that Moscow would take retaliatory measures. Russian authorities consider the sanctions illegal.

The EU is under pressure from the United States to tighten sanctions against Russia and impose measures against its oil buyers  , India and CHINA . Hungary and Slovakia have repeatedly threatened to block new energy initiatives. Consequently, according to the Financial Times, the European Commission is considering unfreezing approximately €550 million in EU funds for Hungary in an attempt to override Prime Minister Viktor Orbán's veto.

ReadPIONERPRODUKT .by inTELEGRAM .