The European Union (EU) has taken a major legal and financial step to increase economic pressure on Russia over its war against Ukraine. In a statement, the EU Council announced that the transfer back of the Russian Central Bank’s frozen assets has been prohibited.

Indefinite Freeze Decision

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas and European Commission President Ursula von der Leyen welcomed the decision. Kallas said that Russia’s assets, estimated at around €210 billion, will remain immobilized on EU territory indefinitely until Russia compensates Ukraine for the damage it has caused.

With this new regulation, the requirement for unanimous approval every six months to extend the freeze has been eliminated. This effectively removes the possibility of a veto by countries such as Hungary and Slovakia.

The ban covers not only the Russian Central Bank but also any legal entity, institution or body acting on its instructions, including the transfer of assets and reserves.

Ukraine Credit Plan

The European Commission has long been working on plans to use frozen Russian assets as collateral for loans to be provided to Ukraine.

Under the plan, Ukraine would receive substantial credit, with repayment expected only if Russia pays war reparations.

A large portion of the frozen Russian assets—around €185 billion—is held by the Belgian financial services company Euroclear.

Belgian Prime Minister Bart De Wever has stated that using these assets as collateral requires shared risk and clearly defined legal foundations.

Russia, for its part, has said it would initiate legal proceedings and hold Belgium responsible if its assets are confiscated. This sensitive issue will be discussed in detail at the EU Leaders’ Summit in Brussels on December 18.

Where Are the Frozen Russian Assets Held?

The total value of Russian state assets frozen by the EU is estimated at approximately €210 billion. Most of these assets are concentrated in Belgium, particularly within the Euroclear system.