EU Agrees to Freeze Russian Assets Indefinitely

The European Union has agreed to indefinitely freeze Russian central bank assets held in Europe, clearing a major obstacle to using the funds to support Ukraine in its defence against Russia. The move comes as EU states seek to secure Ukraine’s finances, viewing Russia’s invasion as a threat to European security.

Indefinite Freeze and Planned Loan to Ukraine

EU governments agreed to keep 210 bn euros ($246 bn) of Russian sovereign assets frozen indefinitely rather than reviewing the freeze every six months. This avoids the risk of Hungary or Slovakia, with closer ties to Moscow, refusing to extend the freeze and potentially forcing the EU to return the funds.

The frozen assets are intended to back a proposed EU loan of up to 165 bn euros to Ukraine for 2026 and 2027, covering military and civilian budget needs. Ukraine would repay the loan only once Russia compensates Kyiv for war damages, effectively turning it into a grant funded by future Russian reparations.

EU leaders are set to finalise the scheme on December 18, including guarantees from all member states to reassure Belgium that it would not bear the cost alone if a Russian lawsuit succeeds. Ukrainian President Volodymyr Zelenskiy will meet German Chancellor Friedrich Merz in Berlin before the summit, with wider European and NATO leaders joining discussions later. Ukrainian Prime Minister Yulia Svyrydenko called the EU decision a «landmark step toward justice and accountability.» Germany has pledged 50 billion euros in guarantees, according to European sources.

Russian Opposition and Legal Challenges

Hungarian Prime Minister Viktor Orban criticised the EU decision, warning it could cause irreparable damage to the bloc. Russia’s central bank condemned the plan as illegal and said it is suing Euroclear, the Brussels-based securities depository holding 185 billion euros of frozen assets, in Moscow courts.

Separately, discussions mediated by the U.S. have explored the possibility of Ukraine joining the EU by January 1, 2027. Officials say the target is extremely ambitious and faces significant political and procedural hurdles, with many diplomats calling the timeline unrealistic.