The European Union has agreed to freeze Russian central bank assets in Europe indefinitely, a move that clears the way for using the funds to help finance Ukraine’s defense and recovery amid Russia’s ongoing invasion.
EU governments approved the decision on Friday, ending the need to renew the asset freeze every six months and locking down about €210 billion in Russian sovereign funds held mainly in Belgium. The step removes a key political risk that had threatened plans to channel the money toward Ukraine.
European officials see the war as a direct security challenge to the bloc and have been searching for stable ways to support Kyiv as the conflict stretches into its fourth year.
By making the freeze open ended, the EU has reduced the chance that a single member state could later block an extension and force the assets to be returned to Moscow. Diplomats have previously expressed concern that countries with closer ties to Russia, including Hungary and Slovakia, could derail future renewals.
The new framework is also designed to reassure Belgium, where most of the assets are held through the financial services firm Euroclear. Brussels has been cautious about legal exposure if Russia challenges the move in court.
The decision supports a broader EU proposal to extend a loan of up to €165 billion to Ukraine for military and civilian spending in 2026 and 2027. Under the plan, Ukraine would only repay the loan if Russia eventually pays war damages, effectively turning the funding into an advance on future reparations.
EU leaders are expected to finalize the structure of the loan at a European Council meeting scheduled for December 18. One unresolved issue is securing guarantees from all member states so Belgium would not bear the financial burden alone if legal claims succeed.
Germany has made clear it backs the plan. European diplomatic sources said Berlin sees no viable alternative and is prepared to provide up to €50 billion in guarantees.
Ukrainian Prime Minister Yulia Svyrydenko welcomed the decision, calling it a turning point. Writing on X, she said the move was a “landmark step toward justice and accountability” and added that it strengthened the foundation for a reparations based funding system.
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“This decision brings us closer to a future in which Russia pays for the destruction it caused,” she wrote.
Ahead of the EU summit, President Volodymyr Zelensky is set to travel to Berlin on Monday for talks with German Chancellor Friedrich Merz. Additional European, EU, and NATO leaders are expected to join later discussions, according to the German government.
As negotiations continue, European officials say the indefinite freeze signals long term commitment to backing Ukraine financially while legal and diplomatic battles over Russian assets play out.
