EU to Freeze Russian Assets Indefinitely, Clearing Path for Ukraine Loan

The European Union has agreed to indefinitely freeze Russian central bank assets held in Europe, a move aimed at strengthening financial support for Ukraine as it continues to defend itself against Russia’s invasion.

The EU has been a key financial backer of Ukraine, viewing the war as a direct threat to European security. According to Reuters, EU governments on Friday agreed to immobilise around €210 billion ($246 billion) in Russian sovereign assets for as long as necessary, ending the current system that requires the freeze to be renewed every six months.

The decision is expected to prevent individual member states, including Hungary and Slovakia — which maintain relatively closer ties with Russia — from blocking extensions of the asset freeze in the future. Without the change, a refusal to renew the measure could have forced the EU to return the funds to Russia.

Reuters reported that the move is also intended to persuade Belgium to support an EU proposal to use the frozen Russian assets to back a loan of up to €165 billion for Ukraine. The loan would help cover Ukraine’s military and civilian budget needs in 2026 and 2027.

Under the proposal, Ukraine would repay the loan once Russia pays war-related damages to Kyiv. Details of the so-called reparations loan are expected to be finalised by the European Council on December 18.

Ukrainian Prime Minister Yulia Svyrydenko welcomed the decision in a post on X, calling it a “landmark step toward justice and accountability.” She said the move strengthens the foundation for the reparations loan mechanism and brings Ukraine closer to a future in which Russia pays for the destruction caused by the war.

Meanwhile, Ukrainian President Volodymyr Zelenskyy is scheduled to visit Berlin on Monday for talks with German Chancellor Friedrich Merz. The discussions will later include European, EU and NATO leaders, according to the German government.

Hungarian Prime Minister Viktor Orban criticised the EU decision, saying the use of a qualified majority vote — requiring the backing of 15 of the 27 member states representing 65% of the EU population — would cause “irreparable damage” to the bloc. In a Facebook post cited by Reuters, Orban said Hungary would do everything possible to “restore a lawful state of affairs.