European Union Leaders Agree to Freeze Billions of Dollars in Russian Assets Indefinitely as Retaliation Against Euroclear.
The European Union has agreed to freeze €210 billion ($185 billion) in Russian sovereign assets indefinitely, marking a significant escalation in the bloc's efforts to pressure Moscow over its war of aggression against Ukraine. The move comes after Russia's central bank filed a lawsuit against Euroclear, the Brussels-based depository that holds the frozen funds.
The decision was made using emergency powers and comes with no end date, effectively rendering it a permanent measure. This is a major step forward in the EU's efforts to use the frozen assets to aid Ukraine's defense, as promised by European Council President António Costa in October. Costa confirmed that EU leaders had delivered on their commitment to "keep Russian assets immobilised until Russia ends its war of aggression against Ukraine and compensates for the damage caused".
The move has been welcomed by Germany, which sees it as the best option and has pledged €50 billion ($45 billion) in guarantees. However, Belgium, Bulgaria, Malta, and Italy have expressed concerns about taking on this risk and argue that the EU should borrow money on capital markets to fund Ukraine, secured against unallocated funds (headroom) in the EU budget.
Tensions are high as some member states are reluctant to take on debt, while others see it as a necessary measure. The EU officials believe the proposed €90 billion ($79 billion) loan for Ukraine will meet two-thirds of Kyiv's financial needs for the next two years and expects other "international partners" to provide the rest.
In a sign of unity among some member states, Belgium, Bulgaria, Malta, and Italy issued a joint statement saying only EU leaders should decide on using the immobilised assets. However, in another twist, Germany has committed to providing guarantees, while the UK is expected to support a similar plan, following its decision on Euroclear-held assets.
The move comes as Ukraine faces a critical financial crisis, with leaders warning that Kyiv will run out of money next spring to fund its defense and pay doctors and teachers. The situation remains delicate as EU officials navigate the complex web of legal risks and competing interests among member states.
The European Union has agreed to freeze €210 billion ($185 billion) in Russian sovereign assets indefinitely, marking a significant escalation in the bloc's efforts to pressure Moscow over its war of aggression against Ukraine. The move comes after Russia's central bank filed a lawsuit against Euroclear, the Brussels-based depository that holds the frozen funds.
The decision was made using emergency powers and comes with no end date, effectively rendering it a permanent measure. This is a major step forward in the EU's efforts to use the frozen assets to aid Ukraine's defense, as promised by European Council President António Costa in October. Costa confirmed that EU leaders had delivered on their commitment to "keep Russian assets immobilised until Russia ends its war of aggression against Ukraine and compensates for the damage caused".
The move has been welcomed by Germany, which sees it as the best option and has pledged €50 billion ($45 billion) in guarantees. However, Belgium, Bulgaria, Malta, and Italy have expressed concerns about taking on this risk and argue that the EU should borrow money on capital markets to fund Ukraine, secured against unallocated funds (headroom) in the EU budget.
Tensions are high as some member states are reluctant to take on debt, while others see it as a necessary measure. The EU officials believe the proposed €90 billion ($79 billion) loan for Ukraine will meet two-thirds of Kyiv's financial needs for the next two years and expects other "international partners" to provide the rest.
In a sign of unity among some member states, Belgium, Bulgaria, Malta, and Italy issued a joint statement saying only EU leaders should decide on using the immobilised assets. However, in another twist, Germany has committed to providing guarantees, while the UK is expected to support a similar plan, following its decision on Euroclear-held assets.
The move comes as Ukraine faces a critical financial crisis, with leaders warning that Kyiv will run out of money next spring to fund its defense and pay doctors and teachers. The situation remains delicate as EU officials navigate the complex web of legal risks and competing interests among member states.
. I mean, €210 billion is a LOT of money 
. It's crazy to think that Russia's been holding onto all those assets while Ukraine is struggling to defend itself against the war 
. I feel like this is a major step forward for the EU in supporting Ukraine 
.
. It's understandable that they don't want to be left holding the bag, but it's also important for the EU to show unity and support Ukraine during this tough time 
.
, but I'd love to see some more international partners chime in to help out 
. And let's be real, Germany's decision to provide guarantees is a big win for EU unity 
. Fingers crossed that this move will help Ukraine get the financial support it needs 
.
I'm surprised Germany is on board with this, feels like they're trying to take a middle ground 
. Meanwhile, I get why some countries are hesitant about taking on debt - it's a huge financial risk 
.
. The EU needs to find a solution ASAP so Kyiv can get some relief and focus on the war effort 
, but I hope it all gets coordinated soon so no one gets left behind 
.
where all Russia's savings are stored 
... €210 billion stuck there! 
. But Belgium, Bulgaria, Malta, and Italy are all like "wait a minute" 
... taking on debt risks is not fun 
. The situation is like a big puzzle 
with many pieces that don't quite fit together 
no end date, sounds like some serious drama 
but what about Ukraine? They need that dough ASAP 
which is good I guess 
but what about Belgium, Bulgaria, Malta, and Italy? They're all worried about debt 
it's a whole mess 
Russia should've thought twice before messing with Ukraine tho 
and i'm all for Germany taking on some of the debt but it's like Belgium, Bulgaria, Malta, Italy are just like "nope, not our problem" 
maybe the EU should just be like "let Ukraine deal with it for now" 
. This move could be seen as super aggressive, and I get why some members are hesitant to take on debt 
We should also think about the impact on Ukraine 