EU moves to indefinitely freeze Russian assets worth €210 billion
The European Union has formally decided to "indefinitely immobilize" approximately €210 billion in Russian sovereign assets held within the bloc, tying their release to Russia paying war reparations to Ukraine. The move aims to increase financial pressure on Moscow for its ongoing war.
The European Union has taken a decisive step to lock down Russian state assets within its jurisdiction indefinitely, directly linking their future to reparations for Ukraine. EU foreign policy chief Kaja Kallas announced the decision, stating it ensures up to €210 billion ($246 billion) in Russian funds "stay on EU soil, unless Russia fully pays reparations to Ukraine for the damage it has caused."
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A signal of escalating costs for Russia
Top EU officials framed the move as a significant escalation of financial pressure. European Commission President Ursula von der Leyen said it sends a "strong signal" that Moscow's costs will continue to mount as long as the war persists. European Council President Antonio Costa confirmed the decision delivers on a prior commitment by EU leaders to keep the assets immobilized until Russia ends its aggression and compensates Ukraine.
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Legal and financial reservations
The policy faces practical complexities, notably from Belgium, which hosts Euroclear, the central securities depository holding the majority of the frozen Russian assets. Belgian authorities have expressed concern about bearing sole legal and financial liability, insisting on amendments to the European Commission's initial proposal to better shield the country and the financial institution from potential lawsuits and risks.
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Broader context and Russian response
The asset freeze is part of a broader EU effort to mobilize up to €90 billion in support for Ukraine, potentially through borrowing against future profits generated by the frozen funds. Russia's central bank promptly denounced the EU's plans as illegal and threatened legal challenges, setting the stage for a protracted financial and legal confrontation over the unprecedented use of immobilized sovereign assets.
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