EU Moves to Approve Indefinite Freeze of Russian Central Bank Assets

Overview

• EU governments were expected to pass the measure on Friday by qualified-majority vote under Article 122, replacing unanimity-based renewals as Hungary’s Viktor Orbán voiced opposition.
• The indefinite freeze is designed to back a proposed loan of up to €165 billion to cover Ukraine’s 2026–2027 military and civilian budget needs.
• The plan envisions Ukraine repaying only if Russia eventually pays war reparations to Kyiv, making the financing effectively an advance on such payments.
• The Bank of Russia called the scheme illegal, filed a case against Euroclear in the Moscow Arbitration Court, and said it will contest any implementation in national and international venues.
• Belgium, which holds about €185 billion of roughly €210 billion in frozen Russian sovereign assets, seeks EU guarantees to address liability concerns ahead of a December 18 leaders’ decision.