BREAKING: The European Union has just announced an indefinite freeze on Russian assets across Europe, a critical move aimed at ensuring Hungary and Slovakia cannot veto their use to support Ukraine. This urgent decision comes as the EU prepares for a summit next week to discuss how to utilize the estimated €210 billion ($247 billion) in Russian Central Bank assets for Ukraine’s financial and military needs.
This unprecedented action was confirmed by EU Council President António Costa, emphasizing the commitment made in October to immobilize Russian assets until the Kremlin ends its war on Ukraine and compensates for the extensive damage inflicted over the past four years. “Today we delivered on that commitment,” Costa stated.
The freeze will prevent Hungary and Slovakia from blocking the necessary sanctions that enable these funds to be utilized effectively. Both countries have been criticized for their close ties to Moscow, with Hungarian Prime Minister Viktor Orbán condemning the EU’s decision, claiming it undermines European law. He stated on social media, “The rule of law in the European Union comes to an end,” expressing his determination to restore lawful order.
The decision utilizes a special EU procedure designed for economic emergencies and signifies a pivotal step in securing Ukraine’s financial stability. The assets, primarily held in Euroclear, a Belgian financial clearing house, have been frozen under sanctions imposed following Russia’s invasion of Ukraine on February 24, 2022.
In a letter to Costa, Slovak Prime Minister Robert Fico expressed his refusal to support any actions that might cover Ukraine’s military expenses, warning that utilizing the frozen assets could jeopardize U.S. peace efforts aimed at reconstruction in Ukraine.
The EU has already provided nearly €200 billion ($235 billion) in support to Ukraine, and the new measures are crucial for planning future aid. Costa noted, “Next step: securing Ukraine’s financial needs for 2026–27,” as discussions for the upcoming summit on December 18 revolve around the allocation of these funds.
The situation remains tense, with the Russian Central Bank filing a lawsuit against Euroclear for damages caused by the asset freeze, labeling the EU’s plans as “illegal” and a violation of international law.
As this developing story unfolds, the implications for both the EU and Ukraine are profound, with potential repercussions on energy prices and economic stability across the region. The urgency of this situation cannot be overstated, as the EU seeks to bolster Ukraine’s defense against ongoing aggression while managing internal dissent from member states.
Stay tuned for more updates on this critical issue as the EU prepares for its decisive summit next week.
