Brussels: The European Union is preparing to indefinitely freeze billions of euros worth of Russian state assets held within the bloc, a decision that removes a major political and legal obstacle to providing long-term financial assistance to Ukraine. The move is aimed at ensuring sustained support for Kyiv as it continues to face the economic and military fallout of Russia’s prolonged invasion.
According to EU officials, the plan would keep around €210 billion in Russian central bank reserves immobilized for an open-ended period. Most of these assets are held in Belgium-based financial institutions. Until now, the freeze required renewal every six months, a process that left the policy vulnerable to political resistance from individual member states and created uncertainty over future commitments to Ukraine.
By making the freeze indefinite, the EU intends to stabilize the legal framework underpinning a large loan package for Ukraine. The bloc is working on a multi-year financial facility that would allow Kyiv to borrow substantial funds for defense, reconstruction and essential public spending, with repayment linked to future Russian war reparations rather than Ukraine’s own budget.
EU diplomats said the change is designed to reassure international partners and financial markets that the frozen Russian assets will remain unavailable to Moscow for the foreseeable future. This certainty is considered crucial for structuring long-term loans, as lenders need assurance that the underlying guarantees will not suddenly lapse due to political disagreements within the EU.
The decision also reflects growing concern in Brussels that internal divisions could undermine Europe’s credibility. Some member states, notably Hungary, have repeatedly questioned sanctions on Russia and threatened to block extensions. Removing the requirement for periodic renewals limits the ability of any single government to use the asset freeze as leverage in unrelated political negotiations.
Russia has strongly condemned the move, arguing that the continued immobilization of its sovereign assets violates international law and principles of state immunity. The Russian central bank has warned that it will pursue legal action against European institutions holding the funds, as well as against governments supporting their use to aid Ukraine.
EU officials have rejected Moscow’s claims, maintaining that the measures are lawful under EU sanctions regimes adopted in response to Russia’s aggression. They argue that Russia itself created the legal and moral basis for the freeze through its invasion of Ukraine and the extensive damage caused to Ukrainian infrastructure and civilian life.
The assets themselves will not be directly seized for now. Instead, the EU plans to use the interest generated from the frozen funds, as well as their continued immobilization, as backing for loans to Ukraine. This approach is intended to limit legal risks while maximizing financial support for Kyiv.
The issue is expected to be formally discussed and endorsed at an upcoming EU leaders’ summit, where broader questions about Ukraine’s long-term funding needs and Europe’s strategic posture toward Russia will also be addressed. With the war showing no signs of a swift resolution, the decision marks a significant step toward embedding support for Ukraine into the EU’s financial and political architecture.
By locking Russian assets in place indefinitely, the EU is signaling that its response to the war is not temporary but structural, tying Moscow’s frozen wealth to the future reconstruction of the country it helped devastate and reinforcing Europe’s commitment to Ukraine in a conflict that continues to reshape the continent’s security landscape.