EU Indefinitely Freezes €210 Billion in Russian Central Bank Assets, Russia Sues Euroclear

EU Solidifies Freeze on Russian Central Bank Assets

The European Union on Friday, December 12, 2025, formally agreed to indefinitely freeze approximately €210 billion ($246-247 billion) worth of Russian central bank assets held within its jurisdiction. This significant decision marks a pivotal step towards utilizing these immobilized funds to support Ukraine's financial needs amidst ongoing conflict. The move aims to remove previous obstacles, such as the requirement for unanimous six-month renewals of the asset freeze, which could have been vetoed by certain member states.

The indefinite freeze was enacted using an emergency clause, Article 122 of the EU treaties, to ensure the assets remain blocked until Russia compensates Ukraine for damages incurred during the war. This measure is intended to pave the way for a substantial loan to Ukraine, with proposals suggesting an amount of up to €165 billion to cover its military and civilian budget needs for 2026 and 2027. This loan is structured to be repaid by Ukraine only upon Russia's payment of war reparations, effectively functioning as an advance on future Russian compensation.

Russia's Central Bank Files Lawsuit Against Euroclear

Hours after the EU's announcement, Russia's Central Bank declared on December 12, 2025, that it had filed a lawsuit against Euroclear, the Belgium-based financial institution holding the vast majority of the frozen Russian assets, estimated at around €185-193 billion. The lawsuit, lodged in a Moscow commercial court, seeks compensation for damages allegedly incurred due to Euroclear's 'illegal actions' in preventing the Russian Central Bank from managing its funds and securities.

The Russian Central Bank has consistently maintained that the freezing of its assets and any plans for their use are 'illegal' and 'contrary to international law,' asserting that such actions violate the principles of sovereign immunity of assets. It has warned of challenging any direct or indirect use of its assets through all available legal avenues, including national courts, foreign jurisdictions, and international tribunals.

International Reactions and Future Steps

The EU's decision has been met with mixed reactions, particularly from member states like Belgium, where Euroclear is headquartered. Belgium has expressed concerns regarding the potential for legal risks and retaliatory measures from Moscow should the frozen assets be used to back loans for Ukraine. Despite these concerns, EU officials are preparing guarantees for Belgium to mitigate these risks.

EU leaders are scheduled to convene on December 18 to finalize the details of the reparations loan and address remaining issues, including the guarantees for Belgium. The move to indefinitely freeze the assets is seen as a crucial step to ensure a stable financial lifeline for Kyiv, with the European Commission having proposed a plan earlier in December to cover a significant portion of Ukraine's financial needs over the next two years.