The European Union has taken a decisive step by freezing Russian assets across Europe indefinitely. This measure aims to prevent Hungary and Slovakia, both of which have pro-Moscow governments, from obstructing the use of these funds to support Ukraine amidst ongoing conflict. The decision was announced on December 15, 2025, as part of a broader strategy to ensure that the estimated €210 billion (approximately $247 billion) in Russian assets can be utilized for Ukraine’s financial and military needs.
Using a special economic procedure, the EU has blocked these assets until Russia ceases its military operations in Ukraine and compensates the country for the extensive damages incurred since the conflict began in February 2022. EU Council President António Costa stated, “Today we delivered on that commitment,” referring to the pledge made by European leaders in October to immobilize Russian assets until the war ends. Costa further highlighted the need to secure Ukraine’s financial requirements for the years 2026 to 2027 during an upcoming summit on December 18, 2025.
This decision is crucial as it paves the way for EU leaders to discuss how to leverage the frozen assets, particularly those held in the Belgian financial clearing house, Euroclear. This financial maneuver aims to underpin a substantial loan for Ukraine, helping the nation address both its military and financial challenges over the next two years.
The indefinite freeze also prevents these Russian assets from being utilized in any negotiations regarding the cessation of hostilities without explicit European approval. A recent 28-point plan proposed by U.S. and Russian officials, which suggested releasing the frozen assets for joint use, was rejected by Ukraine and its allies in Europe.
Hungary’s Prime Minister Viktor Orbán, a close ally of Russian President Vladimir Putin, criticized the European Commission’s actions, accusing it of “systematically violating European law.” In a social media post, Orbán expressed his belief that the rule of law within the EU is effectively ending and vowed that Hungary would strive to restore lawful order. His remarks reflect a growing tension within the EU regarding the support for Ukraine.
Conversely, Slovak Prime Minister Robert Fico expressed his opposition to any plans that would allocate funds for Ukraine’s military expenses. In a letter to Costa, he warned that utilizing frozen Russian assets could undermine U.S. peace efforts, which depend on these resources for Ukraine’s reconstruction.
The European Commission maintains that the ongoing war has significantly impacted the EU’s economy, exacerbating energy prices and hindering growth. To date, the EU has provided nearly €200 billion (approximately $235 billion) in support to Ukraine, highlighting its commitment to assisting the nation through these challenging times.
Belgium, the host of Euroclear, has voiced concerns over the “reparations loan” plan, citing financial and legal risks associated with such measures. The Central Bank of Russia has also responded by filing a lawsuit against Euroclear, claiming damages resulting from its inability to manage the assets. In a statement, the Central Bank denounced the EU’s plans as “illegal” and contrary to international law, asserting that they infringe upon the principles of sovereign immunity.
The implications of the EU’s decision resonate beyond immediate financial considerations, as it illustrates the complexities of European unity in the face of external aggression. As the situation unfolds, the EU’s strategic approach towards Russian assets will play a pivotal role in shaping Ukraine’s future recovery and stability.
