Belgium EU freezes Russian assets permanently
The EU has created an important basis for the use of Russian state assets for Ukraine. 25 of the 27 member states voted in favor of an indefinite ban on the retransfer of funds earmarked in the EU to Russia. Hungary and Slovakia voted against.
12.12.2025, 19:45
SDA
In concrete terms, the main aim of the project is to prevent a country such as Hungary from being able to veto EU sanctions decisions to release the frozen funds. Russian central bank funds are currently frozen by EU sanctions decisions, which must be extended unanimously every six months.
This regulation is seen as an obstacle to the plan to use the funds for long-term loans to Ukraine and only allow repayment to Russia if the country makes reparation payments after the end of its war of aggression against Ukraine.
The decision, which has now been reached in a written procedure, was taken by majority vote against the will of Hungary and Slovakia. The two countries argue, among other things, that the EU's action could torpedo US President Donald Trump's efforts to end the Russian war of aggression against Ukraine.
In order to fix the Russian money indefinitely, Germany and the consenting EU states are invoking Article 122 of the Treaty on the Functioning of the European Union. This stipulates that in the event of serious economic difficulties in the EU, appropriate measures can be adopted by a qualified majority.
EU states cite difficulties caused by war
Among other things, the report now states that Russia's war against Ukraine continues to pose serious economic challenges. Among other things, it has led to a sharp rise in oil, gas and food prices. The measures taken by the member states to mitigate the social and economic consequences of high energy prices amounted to hundreds of billions of euros in the years 2022-2024.
Following the decision, EU Council President António Costa explained that heads of state and government had reaffirmed in October that Russian assets would be frozen until Russia had ended its war of aggression against Ukraine and compensated for the damage caused. Today, this commitment has now been honored.
At next week's EU summit at the latest, German Chancellor Friedrich Merz and other supporters of the plan hope to be able to persuade Belgian Prime Minister Bart De Wever to agree to the use of the Russian funds. Without Belgium, the implementation of this plan is considered extremely difficult because by far the largest part of the Russian funds to be used for Ukraine is managed by the Belgian company Euroclear. This involves around 185 of the total 210 billion euros in the EU.
Belgian government blocked
The Belgian government has so far blocked the plan, citing legal and financial risks. Among other things, it sees the danger of Russia retaliating against European private individuals and companies and expropriating assets in Russia, for example.
De Wever recently named three conditions as prerequisites for Belgium to participate despite the risks. Accordingly, it must be guaranteed that all possible risks are communitized and that there are sufficient financial guarantees to meet potential financial obligations from the first moment the plan is implemented.
He also demanded comprehensive liquidity and risk protection for all citizens or companies affected by the plan and the participation of all other EU countries in which assets of the Russian central bank have also been frozen. According to the EU Commission, these countries include Germany, France, Sweden and Cyprus.
Following a meeting with British Prime Minister Keir Starmer in London on Friday, De Wever said that there was agreement that the EU wanted to support Ukraine in remaining a free, democratic and sovereign country. Very important decisions were pending at EU level.
Russian central bank sues Euroclear in Moscow
The central bank in Moscow has meanwhile announced that it will sue Euroclear. From the Russian point of view, the reasons given were illegal and loss-making actions by the custodian, as well as the mechanisms being considered for the use of Russian assets. The proceedings are to take place before a Moscow arbitration court.
Hungary announced on Thursday that it reserved the right to initiate a review of the EU decision before the Court of Justice of the European Union. The government stated that it was "deeply concerned about the recent tendency to circumvent unanimous decision-making procedures in the area of common foreign and security policy". In Hungary's view, Article 122 is not a correct legal basis for the planned measures.
EU Commissioner Valdis Dombrovskis said on Friday that the procedure was fully compatible with EU and international law. He also pointed out that financial institutions holding immobilized Russian assets are fully protected from proceedings.
