EU Agrees to Indefinitely Freeze €210 Billion in Russian Assets

WISE NEWS PRESS / BRUSSELS, BELGIUM — DEC. 12, 2025

European Union member states have reached an agreement to indefinitely freeze approximately €210 billion in Russian Central Bank assets until Moscow pays war reparations to Ukraine.

The decision is designed to secure the collateral needed for a massive compensation loan to Ukraine and to act as a safeguard against potential policy shifts in Washington under the incoming Trump administration. By invoking Article 122 of the Treaty on the Functioning of the EU, the measure bypassed the European Parliament and required only a qualified majority, effectively neutralizing individual vetoes.

Legal Framework and Article 122

Article 122, previously utilized during the COVID-19 pandemic and the energy crisis, was triggered on the grounds of an "economic emergency." The European Commission argued that Russia’s invasion has caused severe supply disruptions, increased risk premiums, and hybrid attacks, justifying the extraordinary legal move to protect the bloc's economy.

The new regulation establishes the following:

• Permanent Ban: The transfer of the €210 billion—€185 billion of which is held by Euroclear in Belgium and €25 billion in private banks—back to Russia is prohibited.

  
  

• Release Conditions: Funds can only be unfrozen once Russia’s actions cease to pose a risk to the EU economy and Moscow pays restitution to Ukraine.

• Voting Mechanism: Any future decision to release the assets will require a new qualified majority vote, preventing any single member state from forcing a release.

Belgium’s Concerns and Conditions

Belgium, home to Euroclear and the custodian of the vast majority of the frozen funds, remains cautious about the legal implications. Belgian Prime Minister Bart De Wever expressed skepticism, stating, "This is money from a country with which we are not at war... It is like walking into an embassy, taking the furniture, and selling it."

To grant final approval, Belgium has stipulated three conditions:

1. Risk Sharing: All member states must mutually share the financial risks associated with potential legal challenges or compensation claims.

2. Liquidity Guarantees: Concrete support must be provided to Euroclear should the depository face liquidity issues due to lawsuits or default claims.

3. Burden Sharing: The "pool" must include not just the assets at Euroclear, but also the €25 billion held in private banks across other member states, such as France and Germany.

The Washington Factor

Diplomats in Brussels describe the move as a strategic "shield" against the unpredictability of US politics. There are growing concerns that the incoming Trump administration could attempt to use the frozen assets as a bargaining chip in negotiations with Moscow to end the war. By placing the assets under a strict, indefinite EU legal lock, the bloc aims to ensure the funds remain available to support Ukraine regardless of transatlantic policy shifts.

EU leaders are expected to finalize the details of how these assets will back a €90 billion support package for Ukraine’s 2026–2027 budget at a summit on December 18.

www.wisenewspress.com