EU backs indefinite freeze on Russia’s frozen cash ahead of loan plan for Ukraine
The European Union agreed on December 12, 2025, to indefinitely freeze approximately €210 billion ($246 billion) in Russian central bank assets held in Europe. This decision uses emergency powers under EU treaties to bypass the previous six-month renewal process, avoiding potential vetoes from Hungary and Slovakia.
The freeze clears a key hurdle for an EU plan to provide Ukraine with a loan of up to €90-100 billion for 2026-2027 military and civilian needs. Ukraine would repay the loan only after Russia compensates for war damages, effectively making it a grant backed by future reparations. EU leaders aim to finalize details at their December 18 summit, with Germany offering €50 billion in guarantees to reassure Belgium, the main custodian of the assets.
Hungarian Prime Minister Viktor Orban criticized the move as harmful to the EU, vowing to challenge it legally. Russia has threatened retaliation, including legal action against custodians like Euroclear, and warned of decades-long litigation. EU officials view the assets as leverage until Russia ends its invasion and pays damages.
