The European Union has agreed to indefinitely freeze €210 billion of Russian Central Bank assets held in Europe, Reuters reported on Friday. The move is designed to strengthen support for Ukraine.
Previously, decisions to extend the freeze were made every six months, but this left assets vulnerable to governments including Hungary and Slovakia who could veto the use of the funds in Ukraine’s interest or require their return to Russia.
The freeze is also intended to facilitate EU plans to provide Ukraine with a loan of up to €165 billion to cover military and civilian budget needs in 2026 and 2027. According to Ukrainian officials, Ukraine would only have to repay the loan after Russia compensates Kyiv for war-related damages.
While Belgium, Italy, Bulgaria and Malta voted in favour of the indefinite freeze, they have expressed reservations about transferring funds to Ukraine. A final decision will be made at an EU summit being held at the end of next week.
The Central Bank of Russia has also announced plans to file a lawsuit against Belgian securities depository Euroclear, which holds about €190 billion of frozen Russian assets. The Russian regulator described any mechanisms for “direct or indirect use” of its assets as “illegal, contrary to international law, and violating the principles of sovereign immunity of assets.”
This comes in light of persistent diplomatic efforts to secure Western security guarantees for Ukraine. US representative Steve Witkoff is scheduled to meet Ukrainian President Volodymyr Zelensky and European leaders in Berlin this weekend according to The Wall Street Journal.
Zelensky said that a defence working group would be convened in Germany to discuss security guarantees for Kyiv. These developments mark a two-pronged approach — reinforcing Ukraine’s financial and diplomatic security while keeping international pressure on Russia over its ongoing aggression.