EU Freezes Russian Assets Indefinitely to Support Ukraine in Major New Move

The European Union has frozen Russian assets in Europe without a time limit. The decision came on Friday in Brussels. It aims to stop Hungary and Slovakia from blocking the funds that could help Ukraine. The frozen assets will stay locked until Russia ends its war and pays for the damage. This marks a major step in the EU’s support for Ukraine and uses the main keyword: Russian assets.

According to the Associated Press, EU leaders used a special economic procedure to make the move final. This step matters because past sanctions had to be renewed every six months. Budapest and Bratislava had threatened to stop future renewals. Now they cannot block them. EU Council President António Costa said the bloc is keeping its promise to hold Russia accountable.

EU Decision on Russian Assets Raises Stakes Across Europe

The EU holds about 210 billion euros in Russian assets. Most of the money sits inside Euroclear, a major financial clearing house in Belgium. Reuters reported that around 193 billion euros were stored there as of September. The EU now plans to use part of the profits and future legal tools to help fund Ukraine’s needs.

EU leaders will meet again on December 18 to discuss a large loan package for Ukraine. The loan would support the country’s military and budget needs through 2027. Many EU nations see this as critical. They believe Ukraine requires steady funding to survive Russia’s invasion, which began in February 2022.

Hungary and Slovakia strongly oppose more military aid. Hungarian Prime Minister Viktor Orbán sharply criticized the decision. He said European law is being ignored and claimed the war cannot be won. Slovakia’s Prime Minister Robert Fico warned that using the funds could hurt diplomatic efforts by the United States.

The European Commission says the war has cost the EU heavily. Energy prices rose. Growth slowed. Member states have already provided nearly 200 billion euros in aid to Ukraine. EU officials argue that letting the Russian assets sit unused would only help Moscow.

Impact on Europe, Russia, and Ukraine

The move changes the balance of financial pressure in the conflict. It tells Russia that Europe will not ease sanctions. It also gives Ukraine more certainty as it plans for two tough years ahead. The EU hopes the decision speeds up financial work and prevents political delays.

Moscow reacted sharply. Russia’s Central Bank filed a lawsuit against Euroclear in a Moscow court. It claims the blocked funds caused damages. Russian officials also said the EU plan violates international law. They argue the assets should be protected by sovereign immunity.

Belgium has also raised concerns. It says the loan and repayment plan may bring financial risks. Brussels wants other EU states to share some of that load. Still, the overall EU position remains united for now, aside from Hungary and Slovakia.

The debate over Russian assets will shape Europe’s response to the war. The EU believes this action can help Ukraine stay strong. Supporters say the use of Russian assets is fair and needed.

FYI (keeping you in the loop)-

Q1: Why did the EU freeze Russian assets?

The EU froze the Russian assets to ensure they can support Ukraine. The move also blocks Hungary and Slovakia from stopping renewal of sanctions. The assets stay frozen until Russia ends the war.

Q2: How much Russian money is frozen?

The EU holds about 210 billion euros in Russian assets. Most of it is in Euroclear in Belgium. This is one of the largest asset freezes in modern history.

Q3: Will the assets be used for Ukraine?

EU leaders plan to use profits and future legal measures to support Ukraine. They will discuss major loans next week. The goal is to fund Ukraine through 2027.

Q4: Why are Hungary and Slovakia against the plan?

Both governments oppose more military aid for Ukraine. They say the plan breaks EU law and risks harming peace talks. They want stricter controls on how funds are used.

Q5: How has Russia responded?

Russia called the plan illegal. Its central bank filed a lawsuit against Euroclear. Moscow says the funds should be protected by sovereign immunity.