EU Move to Freeze

The European Union has locked down €210 billion in Russian sovereign assets. The assets will now stay frozen without renewal deadlines. The decision was made on December 12, 2025, in Brussels. EU leaders say the move supports Ukraine as the war continues.

The freeze had been renewed every six months. That rule is now gone. Officials say the new setup removes the risk of one country blocking renewal. According to Reuters, the assets will stay frozen until Russia ends its assault on Ukraine and pays for the damage.

EU Indefinite Freeze of Russian Assets

The change marks a major step in Europe’s sanctions policy. The EU wants to use profits from the frozen funds to support a long-term loan for Ukraine. The plan could raise up to €165 billion through 2027. Most of the Russian assets are held by Euroclear in Belgium.

Belgium has warned that the plan carries legal and financial risks. The government wants strong guarantees from EU partners. It fears Russia could retaliate through lawsuits or asset seizures. Euroclear is already facing more than 100 legal cases in Russia.

The new indefinite freeze also removes the veto risk from countries closer to Moscow. Hungary has long opposed harsh measures. Slovakia has raised concerns as well. The EU decision now bypasses these roadblocks.

EU officials say the new plan helps protect Ukraine from funding gaps. Kyiv faces shortages that could hit its military and public services. According to BBC News, Ukraine may run out of critical funds by spring 2026 without outside help.

How the Freeze Changes Europe’s Approach

The legal fight is growing. Russia says the freeze violates international law. The Russian Central Bank has filed a lawsuit against Euroclear. Moscow says the EU move breaks sovereign immunity rules.

Hungary also attacked the decision. Its government said EU law is being “broken on purpose.” It argues the move pushes Europe deeper into a war that cannot be won. Other EU states want more talks on the legal limits of using frozen assets.

Germany has backed the freeze strongly. It says this plan is the only workable path. Berlin has even offered to cover part of the guarantees Belgium demands. Italy, Bulgaria, and Malta have taken a more cautious stance.

EU leaders meet again soon to confirm the loan plan. Ukraine would repay only if it later receives reparations from Russia. That outcome is uncertain. If the lawsuits succeed, the EU may face heavy costs.

FYI (keeping you in the loop)-

Q1: Why did the EU freeze Russian assets indefinitely?

The EU says the long-term freeze protects Ukraine from funding delays. It also stops veto threats from member states that opposed renewals. The assets will stay frozen until Russia ends its war.

Q2: How much Russian money is frozen?

The EU has frozen €210 billion in Russian sovereign assets. Most of the money is held by Euroclear in Belgium. It is the largest asset freeze in EU history.

Q3: How will Ukraine benefit?

The EU plans to support a major loan for Ukraine using profits from the frozen assets. The loan may cover a large share of Ukraine’s budget needs through 2027. It helps fund defense and basic services.

Q4: Why is Belgium concerned?

Belgium fears legal and financial blowback. It wants guarantees that it will not face losses if Russia wins lawsuits. Euroclear already faces many legal cases in Russia.

Q5: What is Russia doing in response?

Russia has filed lawsuits and says the freeze is illegal. It claims the move breaks international norms. Moscow may pursue more legal and diplomatic steps.