LONDON, Dec 13: European Union governments have agreed to keep up to €210bn in Russian assets frozen inside the bloc for an open-ended period, targeting funds locked since Moscow launched its full-scale invasion of Ukraine in 2022, the BBC reports.
Most of the money sits at Belgium based clearing house Euroclear, and EU leaders want to seal a deal at next week’s summit that would use the funds as backing for a major loan to Ukraine, aimed at sustaining its military and keeping the economy afloat, according to the BBC.
After almost four years of war, Ukraine faces a severe cash squeeze. Kyiv estimates it will need about €135.7bn over the next two years. Europe plans to cover roughly two thirds of that amount, while Russia has denounced the plan as outright theft, as reported by the BBC.
In response, Russia’s central bank has filed a lawsuit against Euroclear in a Moscow court, a move widely expected in Brussels. EU officials insist their financial institutions remain shielded from any legal fallout, the BBC notes.
EU backs Ukraine funding, but delays decision on frozen Russian...
The assets were frozen within days of Russia’s invasion, with about €185bn held at Euroclear alone. Brussels and Kyiv argue the money should help rebuild what Russian forces have destroyed. EU officials describe the proposal as a reparations loan, while President Volodymyr Zelensky says using the funds is simply fair, as cited by the BBC.
German Chancellor Friedrich Merz has backed the plan, saying the assets would help Ukraine defend itself against future attacks. EU Economic Commissioner Valdis Dombrovskis has said legal safeguards are already in place, according to the BBC.
Belgium remains uneasy. The government fears it could face massive financial exposure if the plan unravels. Euroclear’s chief executive Valérie Urbain has warned that using the assets could shake the global financial system. Complicating matters further, Euroclear itself has up to €17bn immobilised inside Russia, the BBC mentions.
Prime Minister Bart De Wever has demanded firm conditions before giving full approval and has not ruled out legal steps if Belgium faces serious risks. Brussels is now racing to reassure Belgium ahead of the summit, the BBC says.
So far, the EU has limited itself to using profits earned on the frozen assets. Last year, €3.7bn in interest was sent to Ukraine, a step seen as legally safer since the funds are not direct state property. That approach no longer fills the gap as foreign military aid dropped sharply in 2025 after the United States scaled back support under President Donald Trump, the BBC states.
Two funding options are on the table. One involves raising money on markets with an EU budget guarantee, Belgium’s preferred route. That plan needs unanimous backing, which remains unlikely due to objections from Hungary and Slovakia. The alternative is to lend cash directly from the Russian assets, now mostly converted into liquid funds held via Euroclear and the European Central Bank, according to the BBC.
To reduce risk, EU ambassadors have agreed to freeze Russia’s central bank assets indefinitely, ending the need for six monthly renewals. The decision relies on emergency treaty powers and would stand until Russia pays full war reparations or the threat to the EU economy ends, the BBC notes.
Belgium says it supports Ukraine but fears being left with the bill if courts or markets turn against the plan. Legal experts warn that forcing Euroclear into such a loan could breach banking rules and leave Belgian taxpayers exposed, concerns that continue to shadow next week’s talks, the BBC reports.
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