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The European Union took a decisive step Friday to indefinitely freeze Russia’s assets in Europe, ensuring that pro-Moscow governments within the bloc cannot prevent these funds from being used to support Ukraine. This emergency economic measure blocks approximately €210 billion ($247 billion) of Russian assets until Moscow ends its war against Ukraine and provides compensation for the extensive damage inflicted during the nearly four-year conflict.
EU Council President António Costa emphasized that European leaders had previously committed to keeping Russian assets immobilized until Russia terminates its aggression and makes amends for the destruction caused. “Today we delivered on that commitment,” Costa stated.
The move creates a pathway for EU leaders to develop a mechanism at their December 18 summit to use these frozen Russian Central Bank assets to back a substantial loan supporting Ukraine’s financial and military needs through 2027. “Next step: securing Ukraine’s financial needs for 2026–27,” Costa added.
This decision also effectively prevents the assets from being used in peace negotiations without European approval. Last month, a 28-point plan drafted by U.S. and Russian envoys had proposed releasing the frozen assets for use by Ukraine, Russia, and the United States—a proposal promptly rejected by Ukraine and its European supporters.
French Foreign Minister Jean-Noël Barrot underscored the significance of maintaining European control over these funds, writing on social media platform X that “no one will decide in place of the Europeans the use of these funds.”
Most of the frozen assets—approximately €193 billion ($225 billion) as of September’s end—are held in Euroclear, a Belgian financial clearing house. These assets were initially frozen under EU sanctions imposed following Russia’s February 2022 invasion of Ukraine. Traditionally, these sanctions require renewal every six months with unanimous approval from all 27 EU member states.
The new measure effectively sidesteps potential obstruction from Hungary and Slovakia, both of which have expressed opposition to providing additional support to Ukraine. By implementing this special procedure designed for economic emergencies, the EU has created a mechanism that prevents these countries from blocking sanctions renewal.
Hungarian Prime Minister Viktor Orbán, widely considered President Vladimir Putin’s closest ally within the EU, reacted strongly, claiming that “the rule of law in the European Union comes to an end, and Europe’s leaders are placing themselves above the rules.” He accused the European Commission of “systematically raping European law” to continue what he characterized as an “unwinnable war” in Ukraine, and promised that Hungary would “do everything in its power to restore a lawful order.”
Similarly, Slovak Prime Minister Robert Fico wrote to Costa, refusing to support any initiative that would fund Ukraine’s military expenses. Fico warned that using frozen Russian assets could “directly jeopardize U.S. peace efforts, which directly count on the use of these resources for the reconstruction of Ukraine.”
The European Commission has defended its position by highlighting the substantial economic burden the war has placed on the EU through increased energy prices and stunted growth. The bloc has already provided nearly €200 billion ($235 billion) in support to Ukraine.
Belgium, home to Euroclear, has expressed concerns about the proposed “reparations loan” plan, warning of “consequential economic, financial and legal risks” and calling for risk-sharing among EU members.
In response to the EU’s actions, Russia’s Central Bank announced Friday that it had filed a lawsuit in Moscow against Euroclear, seeking damages for being barred from managing its assets. Euroclear declined to comment on the legal challenge. The Russian Central Bank issued a statement describing the EU’s plans as “illegal, contrary to international law” and violating “the principles of sovereign immunity of assets.”
EU Economy Commissioner Valdis Dombrovskis dismissed Russia’s legal action, expressing confidence that the decision is “legally robust” and predicting that Russia would “continue to launch speculative legal proceedings to prevent the EU from upholding international law.”
Chris Weafer, CEO of Macro-Advisory Ltd. Consultancy, noted that the timing of Russia’s court action is “clearly linked” to the EU’s intention to use the frozen assets, adding that “the Russian Central Bank is making clear that it will respond with legal actions against all countries involved in the decision to take the Russian money.”
The EU’s decision came on the same day that Germany summoned the Russian ambassador in Berlin over allegations of sabotage, disinformation campaigns, cyberattacks, and election interference, further highlighting the deteriorating relations between Russia and Western European nations.
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8 Comments
This is a significant move by the EU to ensure Russia’s assets are not used to undermine Ukraine’s recovery efforts. Preventing pro-Moscow governments from obstructing the use of these funds is an important step in supporting Ukraine financially.
Indefinitely freezing Russia’s assets is a significant escalation of economic pressure on Moscow. While it may face legal hurdles, this move demonstrates the EU’s commitment to Ukraine’s recovery and defense against Russian aggression.
An interesting move by the EU, though the legal implications will be closely watched. Ensuring these funds can’t be used to undermine Ukraine’s recovery is prudent, but the details of how they are deployed will be critical.
While this decision may face legal challenges, it demonstrates the EU’s commitment to keeping pressure on Russia until it ends the war and compensates Ukraine. Securing Ukraine’s financing needs for the coming years will be crucial for its rebuilding and defense.
Agreed. Using Russia’s frozen assets to support Ukraine’s financial and military needs is a pragmatic solution, though the legality will likely be debated.
This decision reflects the EU’s determination to support Ukraine financially, even in the face of opposition from Russia-friendly governments within the bloc. It’s a bold step, but one that may face legal challenges down the line.
This freeze on Russian assets is a powerful economic tool the EU can leverage to maintain sanctions and compel Russia to change course. Preventing Moscow’s proxies from obstructing the use of these funds is an important step.
Exactly. Denying Russia access to these assets removes a potential bargaining chip and increases the costs of its continued aggression against Ukraine.