Fri, 12 Dec 2025

Fri, 12 Dec 2025 EU backs indefinite freeze on Russia's frozen cash ahead of loan plan for Ukraine

After almost four years of Russia's full-scale war, Kyiv is running out of cash, and needs an estimated €135.7bn over the next two years.

* EU governments have agreed to immobilize Russian assets worth up to €210bn, which were frozen in the EU since Russia's invasion of Ukraine.
* The majority of Moscow's cash is held in Belgian bank Euroclear, and European leaders want to use the money for a loan to help Kyiv fund its military and economy.
* Ukraine needs an estimated €135.7bn over the next two years, with Europe aiming to provide two-thirds of that amount.
* Russia has accused the EU of theft and is suing Belgian bank Euroclear in a Moscow court over the EU's loan plan.
* The EU has come up with a plan to prop up Ukraine's economy to the tune of €90bn, which it calls a "reparations loan".
* Belgium is worried about being saddled with an enormous bill if things go wrong and is setting conditions for its acceptance of the plan.
* The EU is working to secure guarantees for the loan, including a guarantee covering all €210bn of Russian assets in the EU.
* If Russia goes after Belgium itself, any ruling by a Russian court would not be recognized in the EU.
* EU ambassadors have agreed to immobilize Russia's central bank assets held in Europe indefinitely.
* The EU believes it can secure sufficient guarantees for the loan, but Belgium fears an added risk of being exposed to extra damages or penalties.
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