EU moves to freeze Russia’s European assets to compel withdrawal from Ukraine and compensate the damage caused, a step that could unlock a massive loan to support Kyiv. The plan, expected to be approved by EU leaders at a summit next week, would preserve tens of billions of euros of Russian Central Bank assets in Europe and set the stage for using them to back Ukraine’s two-year financial and military needs.
Hungarian Prime Minister Viktor Orbán, a longtime ally of Vladimir Putin within Europe, criticized the Commission's proposal as an assault on European law. He said the decision imposes sanctions without proper legal basis and accused EU institutions of bending rules to continue the war in Ukraine, which he argues may be unwinnable. He pledged to defend a lawful order.
Slovakia’s Prime Minister Robert Fico, in a letter to European Council President Antonio Costa, signaled his opposition to any move that would cover Ukraine’s future military expenses. He warned that tapping frozen Russian assets could undermine U.S.-led peace efforts and complicate reconstruction plans for Ukraine.
In parallel, the EU argues that Moscow’s war has imposed substantial costs on the bloc—driving up energy prices and stifling growth—justifying continued asset freezes. The EU has already provided nearly €200 billion in support to Ukraine and contends the assets should be used only with EU oversight.
France’s Foreign Minister Jean-Noël Barrot framed the anticipated decision as a pivotal step that could influence the trajectory of the conflict and expedite peace. He emphasized that Europeans will not concede control to external actors and affirmed that the assets would remain locked for as long as necessary.
The proposed measure would also bar any use of the assets without European consent. It contrasts with a prior 28-point peace plan backed by the United States and Russia, which proposed releasing frozen assets for Ukraine, Russia, and the United States—a plan that Ukraine and many European partners rejected.
Belgium, home of the clearinghouse Euroclear, expressed concerns about a proposed reparations loan, citing significant economic, financial, and legal risks and urging shared responsibility among EU members. Meanwhile, Russia’s Central Bank has filed a lawsuit in Moscow against Euroclear over damages it claims occurred after the asset freeze, and Euroclear declined to comment. The Bank also called the broader EU strategy to use Russian assets for Ukraine’s benefit illegal and contrary to international law, asserting it violated sovereign immunity of assets.
Notes: The EU’s move hinges on treaty provisions that allow protecting economic interests in emergencies, and requires unanimity among member states for sanctions renewals.
Contributors: Karel Janicek (Prague), Sylvie Corbet (Paris), and Katie Marie Davies (Manchester).
