EU Governments Agree to Immobilise Russian Assets to Support Ukraine
EU governments have agreed to immobilise indefinitely Russian assets up to €210 billion frozen in the EU since February 2022, with about €185 billion held by Belgium-based Euroclear.
The plan aims to use these assets to back a loan to Ukraine for its military and economy, proposing two main options: raising about €90 billion on capital markets backed by the EU budget—Belgium's preferred option—or loaning cash from the assets via Euroclear and the European Central Bank. Ukraine is estimated to need about €135.7 billion over two years.
EU ambassadors have approved the indefinite freeze using the emergency Article 122 clause, allowing the freeze to last as long as the threat to the union remains or until Russia pays full war reparations.
In response, Russia has initiated a Moscow court action against Euroclear, labeling the use of the assets as theft. Ukrainian President Volodymyr Zelensky considers it only fair to use the frozen assets for Ukraine's benefit, while German Chancellor Olaf Merz stated that the assets would help Ukraine defend itself.
Belgium has expressed concerns centered on liability, noting that Euroclear has €16–17 billion immobilised in Russia. Belgian Prime Minister Bart De Wever demands robust guarantees and has warned of potential legal action, citing risks of destabilising the international financial system and possible breaches of EU banking rules.
The EU Commission acknowledges Belgium's concerns as legitimate but has addressed them with protections including guarantees and offsetting potential losses via Russia’s clearing-house assets in the EU. It stated that if Russia targets Belgium, EU rules would not recognise any Russian court rulings.
The situation is politically urgent. Seven EU member states and neighboring countries—including the Baltic states, Finland, and Poland—maintain there is no time to lose ahead of the upcoming EU summit. The approach has been described as the most feasible and realistic option. Swedish Finance Minister Elisabeth Svantesson called it an important step, with Norbert Röttgen also voicing support.
So far, windfall profits from the frozen assets have been used to fund Ukraine, totaling about €3.7 billion in 2024. This new plan would provide a more direct and structured framework for using the assets going forward.
