EU Moves to Freeze €210bn in Russian Assets as Moscow Threatens Legal Action

EPA

Russia’s central bank.

The European Union (EU) has agreed to indefinitely freeze €210bn (£185bn) in Russian sovereign assets, a major escalation intended to support Ukraine and prevent any future political vetoes from unfreezing the funds.

European Council President António Costa confirmed that the bloc had fulfilled its commitment to keep Russian assets immobilised until Moscow ends its war in Ukraine and pays compensation for the damage caused.

Previously, sanctions required renewal every six months, leaving the measure vulnerable to objections from member states such as Hungary.

The decision came as Russia’s central bank announced a lawsuit against Euroclear, the Brussels-based securities depository that holds most of the immobilised funds. Russia claims Euroclear’s “illegal actions” have caused financial damage. Euroclear, which is already facing over 100 legal claims in Russia, declined to comment.

The move intensifies debate over a €90bn (£79bn) EU loan package for Ukraine, which would be backed by the frozen Russian assets. Belgium has so far blocked the proposal, citing fears of retaliatory lawsuits and the seizure of Belgian assets.

Belgian Prime Minister Bart De Wever discussed the issue with UK Prime Minister Keir Starmer in London on Friday. Both agreed on the need to maintain economic pressure on Moscow and to place Ukraine in the strongest possible position ahead of any potential peace settlement.

EU leaders are set to revisit Ukraine’s 2026–27 financing at a summit next week, amid warnings that Kyiv could face a major funding shortfall by spring.

Germany supports the frozen-assets plan and has pledged to cover a quarter of the guarantees required for Belgium. The UK, which holds €27bn in Russian assets, is also backing the initiative and expects some G7 members to align with the EU approach.

Source: The Guardian



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