EU To Indefinitely Freeze Russian Assets In Europe, Removes Obstacle To Ukraine Loan

The European Union (EU) has announced its decision to indefinitely freeze Russian central bank assets in Europe. This will help Ukraine to use the case to defend itself in the war.

The EU has backed Ukraine

financially in fighting the war as it sees Russian invasion as a threat to its own security.

According to Reuters, the EU government on Friday agreed to immobilise 210 billion euros ($246 billion) worth of Russian sovereign assets for as long as needed instead of voting every six months on extending the asset freeze.

This agreement will prevent Hungary and Slovakia, who have better relations with Russia, from refusing to roll back the freeze at some point which would force the RU to return the money to Russia.

According to Reuters, the indefinite freezing of the Russian assets in EU is meant to help convince Belgium to support the EU’s plan to use the frozen Russian cash to extend a loan of up to 165 billion euros to Ukraine to cover its military and civilian budget needs in 2026 and 2027.

This loan will be paid back by Ukraine when Russia pays Kyiv war damages.

The details of the reparations loan will be finalized by the European Council on December 18.

In a post on X, Ukrainian Prime Minister Yulia Svyrydenko welcomed the move, calling it a “landmark step toward justice and accountability”. “This decision strengthens the foundation for the reparations loan mechanism and brings us closer to a future in which Russia pays for its crimes and destruction caused,” she wrote.

On Monday Ukrainian President Volodymyr Zelenskyy will visit Berlin for talks with German Chancellor Friedrich Merz. They will be later joined by European, EU and NATO leaders, the German government said.

Meanwhile, Hungarian Prime Minister Viktor Orban said in a post on Facebook he believed the EU move to freeze Russian assets indefinitely via a qualified majority vote – requiring the support of 15 of the 27 member states representing 65% of the EU population – would cause irreparable damage to the bloc, Reuters reported.

He added that Hungary would do all it could to “restore a lawful state of affairs”.