BRUSSELS: The European Union agreed on Friday to indefinitely freeze Russian central bank assets held in Europe, removing a big obstacle to using the cash to help Ukraine defend itself against Russia.

The EU wants to keep Ukraine financed and fighting as it sees Russia’s invasion as a threat to its own security. To do so, EU states aim to put to work some of the Russian sovereign assets they immobilised after Moscow’s 2022 invasion of Ukraine.

A first big step, which EU governments agreed on Friday, is to immobilise 210 billion euros ($246 billion) worth of Russian sovereign assets for as long as needed instead of voting every six months on extending the asset freeze.

This removes the risk that Hungary and Slovakia, which have better relations with Moscow than other EU states, could refuse to roll over the freeze at some point, forcing the EU to return the money to Russia.

The indefinite asset freeze is meant to help convince Belgium to support the EU’s plan to use the frozen Russian cash to extend a loan of up to 165 billion euros ($190bn) to Ukraine to cover its military and civilian budget needs in 2026 and 2027. The loan would be paid back by Ukraine only when Russia pays Kyiv war damages, making the loan effectively a grant.

Published in Dawn, December 14th, 2025