High Representative of the European Union for Foreign Affairs and Security Policy Kaja Kallas signs an agreement to transfer to Ukraine a tranche of proceeds from frozen Russian assets during UA-EU foreign Minister’s meeting in Lviv, Ukraine in May.
| Photo Credit: AP
The European Union looked set on Friday (December 12, 2025) to indefinitely freeze Russian central bank assets held in Europe, removing a big obstacle to using the cash to help Ukraine defend itself against Moscow’s invasion.
EU governments aim to sign off by 1600 GMT, through a qualified majority vote, on a plan to immobilise 210 billion euros ($246 billion) worth of Russian sovereign assets for as long as needed to prevent major economic disruption to the EU economy.
The new freeze, which would stay in place “until there is no longer an immediate threat to the economic interests of the Union”, will replace the current system which requires a roll-over of the freeze every six months by unanimity.
This will remove the risk that Hungary and Slovakia, which have better relations with Moscow than other EU states, could refuse to roll over the freeze at some point forcing the EU to return the money to Russia.
“Hungary protests against this decision and will do everything it can to restore a lawful state of affairs,” Orban wrote.
Russia’s central bank said on Friday that EU plans to use its assets were illegal and that it reserved the right to employ all available means to protect its interests.
The indefinite asset freeze is meant to help convince Belgium to support the EU’s plan to use the frozen Russian cash to extend a loan of up to 165 billion euros to Ukraine to cover its military and civilian budget needs in 2026 and 2027.
The loan would be paid back by Ukraine only when Russia pays Kyiv war damages, making the loan effectively a grant that advances future Russian reparations payments.
Published – December 12, 2025 10:53 pm IST
