EU agrees to indefinitely freeze Russian assets, removing obstacle to Ukraine loan
The European Union recently agreed to indefinitely freeze approximately €210 billion ($246 billion) in Russian central bank assets held in Europe. This decision, reached on December 12, 2025, eliminates the need for six-month renewal votes and removes a key barrier to using these funds for a reparations loan to Ukraine.
The freeze targets sovereign assets immobilized since Russia’s 2022 invasion of Ukraine, preventing their return to Moscow despite opposition from Hungary and Slovakia. It paves the way for an EU-backed loan of up to €90 billion to cover Ukraine’s military and civilian needs through 2027, repayable only via future Russian reparations. EU leaders plan to finalize the loan at their December 18 council meeting, with Germany offering €50 billion in guarantees to address Belgium’s concerns as the primary custodian.
Ukrainian officials hailed it as a “historic step toward justice,” while Hungary’s Viktor Orban condemned it as harmful to the EU’s rule of law. Russia has responded with legal action against Euroclear, the Belgian firm holding much of the assets, signaling potential retaliation. The move strengthens EU leverage but hinges on unified member state backing to avoid financial risks.
