EU Votes to Freeze Russian Central Bank
London, UK – December 13, 2025
In a monumental financial decision aimed at tightening the economic noose around Moscow, the EU Votes to Freeze Russian Central Bank Assets Indefinitely.
The European Union’s Council formally agreed to prohibit the transfer of immobilized Russian sovereign assets back to Russia, marking a critical step toward using the approximately €210 billion in frozen funds to aid Ukraine’s long-term defense and reconstruction.
This exhaustive CJ newspaper report details the complex legal maneuver, the political motivations, and the significant financial implications of this move.
Headline Points
Indefinite Freeze:
The EU Council agreed to indefinitely prohibit the direct or indirect transfer of Russian Central Bank assets held within the bloc back to Russia, removing the previous six-month renewal cycle.
Value:
The immobilized assets are estimated to be around €210 billion (approx. $247 billion), with the vast majority held by the Belgian financial services company, Euroclear.
Political Motivation:
The move was enacted using emergency powers (Article 122) to prevent Moscow-friendly members like Hungary and Slovakia from vetoing the continued freezing of the assets, thereby maintaining EU unity.
Reparations Loan:
The indefinite freeze is a key step toward securing these assets as collateral for a massive reparations-backed loan to Ukraine, potentially worth up to €165 billion, to cover military and civilian costs.
Russian Reaction:
Moscow immediately retaliated by filing a lawsuit against Euroclear in a commercial court, accusing the financial institution of unlawfully blocking access to the funds.
Leveraging Emergency Powers to Ensure Continuity
The decision by the EU Council was a carefully planned legal and political maneuver, executed using an emergency clause in EU law, Article 122.
This procedure allows the EU to act urgently to limit economic damage to the Union caused by a crisis, in this case, the fallout from the ongoing conflict in Ukraine.
Critically, this mechanism allows the decision to be passed by a qualified majority, circumventing the need for unanimous agreement.
This was essential to prevent potential vetoes from member states with warmer ties to Moscow, specifically Hungary and Slovakia, who had previously created roadblocks in the sanction renewal process.
By moving the freeze from a temporary, six-month cycle to an indefinite status, the EU has removed a significant point of vulnerability and uncertainty.
The measure is designed to remain in force as long as transferring major financial resources back to Russia causes, or could cause, serious economic problems for the EU and its members.
European Commission President Ursula von der Leyen hailed the decision, stating that it sends a “strong signal to Russia that as long as this brutal war of aggression continues, Russia’s costs will continue to rise.” It also provides a powerful message of continued support for Kyiv.
The Path to Funding Ukraine’s Defense
The primary significance of the indefinite freeze is that it paves the way for the most ambitious financial support package for Ukraine yet conceived:
the reparations-backed loan. With the assets now permanently immobilized, the EU is moving closer to finalizing a plan to leverage these frozen funds as collateral.
Under the proposed complex scheme, the EU would borrow cash, likely from Euroclear’s income generated by the frozen assets, and then loan those funds to Ukraine to cover crucial military and civilian spending.
Ukraine would only be required to repay the loan once Russia agrees to pay reparations for the massive destruction inflicted upon the country.
European leaders are expected to finalize the details of this historic loan, along with necessary guarantees for Belgium (where the majority of the assets are held) against Russian legal action, at a European Council meeting scheduled for December 18.
Moscow’s swift legal counter-action—a lawsuit against Euroclear—highlights the gravity of the EU’s financial blow.
The Kremlin views the seizure and immobilization as unlawful and a direct assault on the rule of law.
Nonetheless, the EU’s move locks in an enormous pool of capital, transforming a passive sanction into an active financial instrument for supporting Ukraine’s resilience and defense.
