Russia has strongly denounced the European Union’s plan to indefinitely immobilise €210 billion (£185 billion) in Russian assets frozen in the EU since the start of its full-scale invasion of Ukraine in February 2022. The majority of the funds are held by Belgian bank Euroclear, and EU leaders hope to repurpose them to provide loans supporting Kyiv’s military and economic needs.
The Russian Central Bank has filed a lawsuit against Euroclear in Moscow, challenging the legality of using the frozen funds. Russian officials have accused the EU of theft, warning that the move violates international financial norms.
Ukraine, now in its fourth year of war, is projected to require €135.7 billion (£119 billion; $159 billion) over the next two years to sustain defence and recovery efforts, with Europe expected to cover roughly two-thirds of the sum. Ukrainian President Volodymyr Zelensky and German Chancellor Friedrich Merz have argued that the frozen assets should serve as reparations for Russia’s destruction, enabling Ukraine to defend itself and rebuild. EU officials maintain that European financial institutions are legally protected from Russian court actions.
Belgium, however, has raised concerns about the potential financial risks. Euroclear CEO Valérie Urbain warned that using the funds could destabilise the international financial system, as the bank also holds €16–17 billion in Russian assets. Belgian Prime Minister Bart De Wever has demanded “rational, reasonable, and justified conditions” for approval and has not ruled out legal action if significant risks arise.
Previously, the EU allowed limited use of the frozen assets to pay Ukraine “windfall profits,” which totalled €3.7 billion in 2024. Full deployment has become more urgent in 2025 as international military aid, particularly from the United States, has declined. Two main EU proposals aim to provide Ukraine with €90 billion: one involves raising the money on capital markets backed by the EU budget, while the other would use Russia’s frozen assets, largely held in cash by Euroclear through the European Central Bank.
The European Commission said Belgium’s concerns have been addressed, with guarantees proposed to cover all €210 billion in frozen assets. Any potential losses to Euroclear’s holdings in Russia would be offset by Russia’s own clearing house assets in the EU, and Russian court rulings would not be recognised within the EU.
EU ambassadors recently agreed to immobilise Russia’s central bank assets indefinitely, removing the prior six-month renewal requirement. The decision, taken under Article 122 of the EU Treaties, allows the funds to remain frozen as long as an “immediate threat to the economic interests of the union” exists or until Russia pays full war reparations to Ukraine. Swedish Finance Minister Elisabeth Svantesson called it “an important step in enabling more support for Ukraine and protecting our democracy.”
While some EU members, including Hungary and Slovakia, oppose the plan, seven countries closer to Russia, such as the Baltic states, Finland, and Poland, have supported it as the most viable financial solution. German MP Norbert Röttgen described the move as urgent, saying, “If we fail, I don’t know what we’ll do afterwards. That’s why we have to succeed in a week’s time.”
Concerns also remain over US plans to repurpose portions of Russia’s frozen funds, with early drafts suggesting $100 billion could be used for reconstruction, sharing profits between the US and Europe. The EU’s indefinite immobilisation of the assets could complicate such proposals.
Hungarian Prime Minister Viktor Orban criticised the plan, claiming EU leaders are “placing themselves above the rules” and bypassing the rule of law.
As EU leaders prepare for next week’s summit, the decision to freeze Russia’s assets indefinitely is expected to play a pivotal role in securing financial support for Ukraine’s ongoing war effort and post-war recovery.
