European Union governments have agreed to keep up to €210 billion in Russian assets tied up indefinitely.
Funds have been frozen in the bloc since Moscow launched its full-scale invasion of Ukraine in 2022.
A large part of the money is kept in the Belgian clearinghouse Euroclear. EU leaders hope to reach a deal at next week’s summit that will allow the assets to be used as part of a loan package to support Ukraine’s military and economy.
Ukraine faces a serious funding gap after almost four years of war and is estimated to need €135.7 billion over the next two years. Europe intends to contribute two-thirds of that amount. Moscow has accused the EU of theft.
The Russian Central Bank said on Friday it had filed a lawsuit against Euroclear in a Moscow court in response to the EU loan proposal.
Russia’s funds in the EU, frozen days after the invasion began, include €185 billion held in Euroclear. Both the EU and Ukraine argue that the assets should help rebuild damaged infrastructure, describing the plan as a €90 billion “repair loan” for Ukraine.
Ukrainian President Volodymyr Zelensky said it was “fair” that the frozen assets were used to repair damage caused by the war. German Chancellor Friedrich Merz said the funds would help Ukraine defend itself against new Russian attacks.
EU officials expected legal action from Russia. European Economic Commissioner Valdis Dombrovskis said the EU institutions were protected from such procedures.
Belgium, however, has expressed concern about the risks involved. Euroclear CEO Valérie Urbain warned that the use of the assets could affect the global financial system. Euroclear itself has between 16,000 and 17,000 million euros tied up in Russia.
Belgian Prime Minister Bart De Wever has set conditions before backing the EU plan and has not ruled out further legal measures if the proposal threatens Belgium’s interests.
The EU is now working to secure a deal acceptable to Belgium before Thursday’s summit. The bloc has so far avoided directly touching the frozen assets, but has transferred the “windfall profits” generated by them to Ukraine. In 2024, that figure would rise to 3.7 billion euros.
International military support for Ukraine has declined sharply in 2025, and Europe will not be able to fully replace reduced U.S. aid under President Donald Trump.
To raise the planned €90 billion, EU members are weighing two options. One involves borrowing on capital markets with the EU budget as collateral, a plan Belgium prefers but requires unanimous approval, which Hungary and Slovakia oppose.
The other option is to provide Ukraine with a loan directly backed by frozen Russian assets, most of which have matured into cash held by the European Central Bank.
The European Commission says Belgium’s concerns have been addressed. Under the proposal, Belgium would have full guarantee against any financial loss related to the frozen funds.
If Euroclear loses assets in Russia, EU officials say the loss would be offset by Russian clearinghouse assets held in the EU. Any ruling by a Russian court against Belgium would not be recognized in the bloc.
In a significant move, EU ambassadors agreed to indefinitely freeze the assets of Russia’s central bank. Previously, the freeze had to be renewed every six months by unanimous vote.
The decision was made under Article 122 of the EU treaties, which allows action during an “immediate threat” to the EU’s economic interests or until Russia pays full war reparations to Ukraine.
Swedish Finance Minister Elisabeth Svantesson said the deal would help the EU provide more support to Ukraine.
(BBC)
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