European Union member states have agreed to impose an indefinite freeze on the Russian central bank assets held in Europe, removing a major political obstacle to using the funds to support Ukraine’s defence against Moscow.
The decision marks a significant shift in the bloc’s approach to the long-term management of approximately €210 billion in frozen Russian assets. Until now, the freeze had to be renewed every six months, a process that risked being derailed by countries such as Hungary and Slovakia, which maintain closer ties with Moscow than other EU members.
By making the freeze permanent, EU governments eliminate the possibility that a single member state could block future renewals, which would have forced the bloc to return the funds to Russia.
The European Union considers Russia’s invasion of Ukraine a direct threat to European security and is seeking sustainable ways to finance Kyiv’s defence and budgetary needs. A key part of that effort involves tapping into the proceeds generated by the frozen Russian assets.
Belgium — home to Euroclear, where a large portion of the funds are held — had previously raised concerns about the legal and financial implications of the plan. The move toward an indefinite freeze is expected to secure Belgian support for an EU proposal to use the Russian assets to back a loan of up to €165 billion for Ukraine. The loan would help cover Ukraine’s defence and budget requirements in 2026 and 2027 and would only be repaid by Kyiv once Russia pays war reparations.
European leaders are scheduled to finalise the terms of the loan and resolve remaining issues during the European Council summit on 18 December.
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