Russian Central Bank Assets Frozen Permanently — EU Decision
Economy
European Union governments have agreed to freeze Russian Central Bank assets held in Europe indefinitely, amounting to approximately €210 billion, Reuters reports. Previously, the freeze had to be renewed every six months.
According to the agency, the indefinite freeze eliminates the risk of a potential veto by certain EU members, notably Hungary and Slovakia, which could have blocked the use of the assets or forced their return to Russia.
The decision is also intended to persuade Belgium to support the EU’s plan to use proceeds from the frozen assets to provide Ukraine with loans of up to €165 billion to cover military and civilian budget needs in 2026 and 2027. Under the proposed mechanism, Ukraine would only be required to repay the loans after Russia pays compensation for war-related damages.
Belgium, along with Italy, Bulgaria, and Malta, voted in favor of the indefinite freeze but expressed reservations regarding the direct transfer of the assets to Ukraine. A final decision on their use is expected at the EU summit scheduled for December 18–19.
Meanwhile, the Central Bank of Russia announced it would file a lawsuit in the Moscow Arbitration Court against the Belgian securities depository Euroclear, where around €190 billion of the frozen assets are held. The regulator stated that any direct or indirect use of its assets is illegal, violates international law, and infringes upon the principle of sovereign immunity.
The decision is also intended to persuade Belgium to support the EU’s plan to use proceeds from the frozen assets to provide Ukraine with loans of up to €165 billion to cover military and civilian budget needs in 2026 and 2027. Under the proposed mechanism, Ukraine would only be required to repay the loans after Russia pays compensation for war-related damages.
Belgium, along with Italy, Bulgaria, and Malta, voted in favor of the indefinite freeze but expressed reservations regarding the direct transfer of the assets to Ukraine. A final decision on their use is expected at the EU summit scheduled for December 18–19.
Meanwhile, the Central Bank of Russia announced it would file a lawsuit in the Moscow Arbitration Court against the Belgian securities depository Euroclear, where around €190 billion of the frozen assets are held. The regulator stated that any direct or indirect use of its assets is illegal, violates international law, and infringes upon the principle of sovereign immunity.
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