25 of the 27 EU member states have decided to indefinitely ban the return of frozen Russian central bank funds to Russia. This move creates a foundation for potentially using the assets to support Ukraine. Hungary and Slovakia voted against it.
The European Union has made a significant decision to keep Russian state assets permanently in the EU. On Friday, 25 of the 27 member states voted in a written procedure to ban the return of the frozen funds to Russia. Only Hungary and Slovakia rejected the proposal, fearing it would hinder US President Donald Trump's peace efforts. Hungary announced it would challenge the decision at the European Court of Justice.
Currently, around 210 billion euros in Russian central bank funds are frozen under sanctions decisions that must be unanimously renewed every six months. This mechanism obstructs plans to use the funds for long-term loans to Ukraine, conditional on Russia paying reparations after the war ends. The EU states rely on Article 122 of the Treaty on the Functioning of the EU, which allows qualified majority votes in economic crises. They justify this with the war's high costs, including rising energy and food prices that have cost the EU hundreds of billions of euros.
EU foreign affairs chief Kaja Kallas stated: "The decision ensures that up to 210 billion euros in Russian funds remain on EU soil – unless Russia provides full compensation to Ukraine." German Chancellor Friedrich Merz (CDU) called it "a clear signal of European sovereignty" and praised the eventual agreement from Italy and Belgium despite initial concerns.
Belgium, however, blocks the use of the funds, as the majority – about 185 billion euros – is managed by the Belgian firm Euroclear. Prime Minister Bart De Wever demands risk guarantees to avoid Russian retaliation. The Russian central bank plans to sue Euroclear at a Moscow arbitration court. EU Commissioner Valdis Dombrovskis assured that the approach is legally sound and protects financial institutions.
