EU Ambassadors Agree to Indefinitely Immobilise Russia's Central-Bank Assets Held in Europe to Support Ukraine
EU ambassadors have agreed to indefinitely immobilise Russia's central-bank assets held in Europe, amounting to up to €210bn, mainly managed via the Belgian custodian Euroclear. This freeze has been extended under an emergency clause (Article 122).
Two EU-backed funding routes are planned to provide Ukraine with about €90bn: one involves capital-market fundraising backed by the EU budget, which is Belgium's preferred option and requires unanimous EU approval; the other is loaning Ukraine cash from the frozen Russian assets held by Euroclear and the European Central Bank. Ukraine's total funding requirement over the next two years is approximately €135.7bn, with Europe aiming to supply two-thirds of this amount.
Windfall profits of €3.7bn expected from the frozen assets in 2024 have already been paid to Ukraine. The plan to use these assets relies on their interest as a safe step because the funds are under sanctions and are not classified as sovereign Russian property.
Belgian officials have voiced concerns about legal risks and potential liabilities for Euroclear. Prime Minister Bart De Wever has requested strong guarantees and has not dismissed the possibility of legal action if the arrangements present significant risks. Meanwhile, Russia has initiated legal proceedings against Euroclear in Moscow, arguing that these assets should remain untouched. The EU maintains that the assets remain frozen in accordance with sanctions.
Euroclear currently holds about €16-17bn immobilised in Russia. Belgian authorities warn that any mishandling of these assets could destabilise the international financial system and expose Belgium to losses.
Within the EU, political dynamics are tense. Some member states are urging urgent action, while Hungary and Slovakia oppose funding Ukraine. Furthermore, ongoing discussions with the United States concern reconstruction plans and the suitability of using frozen assets, with the EU's move potentially complicating US proposals.
