EU Agrees to Immobilise €210 Billion in Russian Assets, Unlocks Ukraine Loan

European Union governments agreed on Dec. 12 to immobilise about €210 billion in Russian sovereign assets held in the EU for as long as needed, a decision intended to clear the path for a large EU loan and reparations package for Ukraine. The measure replaces the six month renewal process that until now required unanimous approval of the 27 member states, a requirement Brussels officials said risked future obstruction by countries with closer ties to Moscow.

Ambassadors reached the agreement by invoking Article 122 of the EU treaties, a provision for economic emergencies that allows adoption by qualified majority and bypasses the European Parliament. That legal framing, reported by multiple outlets, prohibits transferring the funds back to the Russian central bank and was presented as an emergency economic policy step to prevent the assets from being repatriated or used in off EU negotiations over the war.

Most of the frozen funds are held at Euroclear, the Belgian securities depository and clearing house in Brussels. Reporting varies on exact holdings at Euroclear, with Euronews citing €185 billion and the Associated Press reporting about €193 billion at the end of September, while roughly €25 billion is said to be in private banks. Several outlets and EU officials noted that assets originally held in securities have largely matured into cash and that those cash balances are held by Euroclear at the European Central Bank, a technical point that matters for legal ownership and for how guarantees will be structured.

The immobilisation is explicitly tied to a planned EU loan to Ukraine, proposed at up to €165 billion to cover military and civilian budget needs in 2026 and 2027. The decision aims to convince sceptical member states, notably Belgium, to back the loan by removing the political risk that a future government might refuse to reapprove a freeze and force the return of the funds to Russia. Reports said guarantee arrangements remain under negotiation, with Reuters citing unnamed sources that Germany would provide €50 billion in guarantees as part of a larger €210 billion guarantee package, while BBC reporting said the European Commission would protect Belgium with a guarantee covering the full frozen amount.

EU officials framed the step as both practical and political, designed to prevent the frozen assets from becoming leverage in any settlement outside EU oversight. U.S. concerns about potential future claims on Russian funds were also flagged by press accounts. EU Council President Antonio Costa was quoted saying European leaders had delivered on their “commitment” to immobilise Russian assets “until Russia ends its war of aggression against Ukraine and compensates for the damage caused.”

Key technical details, including the final structure of guarantees, the handling of potential Russian legal claims and whether any assets could be treated as Euroclear property at the ECB, remain to be resolved at the European Council summit on Dec. 18. The decision marks a significant shift in EU sanctions policy, moving from periodic renewals to a long term immobilisation intended to underpin a large financial lifeline to Kyiv.