The European Union on Friday decided to indefinitely freeze Russian assets in Europe in order to prevent their release and to stop Hungary and Slovakia from blocking support for Ukraine.
The move was reported by The Associated Press.
The decision was taken using a special procedure designed for economic emergencies. Under the measure, the assets will remain frozen until Russia ends its war against Ukraine and compensates for the damage caused. The assets in question amount to around €210 billion belonging to Russia’s central bank, most of which are held at the Belgian-based clearing house Euroclear.
European Council President António Costa said EU leaders agreed in October to keep Russian assets immobilised until the war ends and Ukraine is compensated. He added that the decision paves the way for discussions at the December 18 summit on how to use the funds to underpin a major loan to cover Ukraine’s financial and military needs in 2026–2027.
The move also prevents the frozen assets from being used in any negotiations to end the war without the approval of the European Union. According to AP, a previously discussed plan drafted by US and Russian envoys that would have allowed the assets to be used by Ukraine, Russia and the United States was rejected by Kyiv and its European partners.
Hungary and Slovakia opposed the EU’s decision. Hungarian Prime Minister Viktor Orbán said Brussels was undermining the rule of law in the bloc, while Slovak Prime Minister Robert Fico warned he would not support any steps that include covering Ukraine’s military expenses in the coming years.
Meanwhile, Russia’s central bank said it has filed a lawsuit against Euroclear in a Moscow court, claiming damages caused by restrictions on managing the assets. The European Commission said the EU decision is legally robust and expects Russia to continue launching legal challenges to obstruct the use of the funds.