EU has agreed to freeze €210 billion of Russian assets indefinitely
On 12 December, the European Union agreed to freeze the assets of the Russian central bank held in Europe indefinitely. This paves the way for a "reparations loan" for Ukraine.
This was reported by Censor.NET with reference to Reuters.
EU decision to assist Ukraine
As noted, this move by the EU should convince Belgium to support the European Council's plan and use frozen Russian funds to provide Ukraine with a "reparations loan".
It also eliminates the risk that Hungary and Slovakia, which have better relations with Moscow than other EU states, may refuse to continue the freeze at some point, forcing the EU to return the money to Russia.
The agency writes that the EU wants to continue financing Ukraine and supporting its struggle, as it considers Russia's invasion a threat to its own security.
The first major step agreed upon by EU governments today is to freeze €210 billion ($246 billion) in Russian sovereign assets for as long as necessary, rather than voting every six months to extend the asset freeze.
Russian assets to help Ukraine
- As a reminder, earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral for providing Ukraine with "reparation loans". Formally, Russian assets subject to sanctions will not be confiscated, but Ukraine will repay such loans only after Russia pays reparations.
- According to various estimates, the European Union's "reparation loan" to Ukraine, secured by Russian assets, could amount to €130-140 billion. Its final size will be determined after the International Monetary Fund assesses Ukraine's financing needs in 2026 and 2027.
- In total, Euroclear has accumulated more than €175 billion in cash from frozen Russian assets, which could be used to secure a new loan. But before the EU agrees to grant a reparations loan, it will want to repay the G7 loan to Ukraine of €45 billion ($50 billion) agreed last year, which was to be repaid from the proceeds of frozen Russian assets.
