EU Freezes Russian Assets Indefinitely to Support Ukraine

The European Union has decided to indefinitely freeze Russian central bank assets to aid Ukraine against Russian aggression. This move allows EU states to use immobilized assets to finance Ukraine's defense and recovery. The plan includes a significant loan, effectively a grant, that could be backed by Russia's reparations.

In a decisive move, the European Union has agreed to indefinitely freeze Russian central bank assets held in Europe. This strategic decision, reached on Friday, is aimed at supporting Ukraine in its ongoing conflict with Russia. The EU's determination to back Ukraine underscores its view of Russia's aggression as a security threat to Europe.

By immobilizing 210 billion euros of Russian sovereign assets, the EU removes the risk of dissent from Hungary and Slovakia, which maintain relatively close ties with Moscow. This financial strategy is intended to ensure that Ukraine remains funded, particularly through a proposed loan of up to 165 billion euros to cover military and civilian expenses in the coming years.

The financial implications of this decision are significant, as the loan to Ukraine would be repaid only after Russia addresses war damages owed to Kyiv, effectively functioning as an advance on reparations. Talks between Ukrainian and European leaders, including an upcoming meeting in Berlin, aim to finalize the details of this financial arrangement amid legal challenges from Russia and internal EU concerns.