BRUSSELS: The European Union on Friday agreed to indefinitely freeze Russian assets held in Europe, a move aimed at preventing Hungary and Slovakia — both led by governments seen as friendly to Moscow — from blocking the use of the funds to support Ukraine.
Invoking a special procedure designed for economic emergencies, the EU said the assets would remain immobilised until Russia ends its war against Ukraine and compensates Kyiv for the extensive damage caused over nearly four years of fighting.
EU Council President António Costa said European leaders had agreed in October “to keep Russian assets immobilised until Russia ends its war of aggression against Ukraine and compensates for the damage caused. Today we delivered on that commitment.”
The decision removes a key hurdle to plans for using tens of billions of euros in Russian Central Bank assets to back a major loan package for Ukraine. EU leaders are expected to discuss the details at a summit next week. “Next step: securing Ukraine’s financial needs for 2026–27,” Costa said, noting that he will chair the December 18 summit.
The move also ensures that the estimated €210 billion in frozen Russian assets cannot be used as leverage in any peace negotiations without European approval. Last month, a 28-point plan drafted by US and Russian envoys proposed releasing the frozen assets for use by Ukraine, Russia and the United States, but the plan was rejected by Kyiv and its European allies.
Hungarian Prime Minister Viktor Orbán, widely regarded as Russian President Vladimir Putin’s closest ally in the EU, criticised the decision, accusing the European Commission of “systematically raping European law.”
Belgium, where the financial services firm Euroclear is based, has expressed reservations about the so-called “reparations loan” plan, warning that it carries significant economic, financial and legal risks. Brussels has called on other EU member states to share the potential burden.
Meanwhile, Russia’s Central Bank said on Friday it had filed a lawsuit in Moscow against Euroclear, seeking damages over restrictions that prevented it from managing the frozen assets. Euroclear declined to comment.
