EU freezes Russian assets indefinitely
The European Union froze Russian assets in Europe indefinitely on Friday to prevent Hungary and Slovakia, both countries with Moscow-friendly governments, from blocking billions of euros in aid to Ukraine, the Associated Press has reported.
"Using a special procedure meant for economic emergencies, the EU blocked the assets until Russia gives up its war on Ukraine and compensates its neighbor for the heavy damage that it has inflicted for almost four years," the statement reads.
EU Council President Antonio Costa said European leaders committed in October to "keep Russian assets immobilized until Russia ends its war of aggression against Ukraine and compensates for the damage caused. Today we delivered on that commitment."
This is a key step that will allow EU leaders at a summit next week to discuss how to use tens of billions of euros in Russian central bank assets to guarantee a huge loan to help Ukraine meet its financial and military needs over the next two years.
"Next step: securing Ukraine's financial needs for 2026–27," added Costa, who will chair the summit on December 18.
The move also prevents the assets, estimated at EUR 210 billion ($247 billion), from being used in any talks to end the war without European approval.
Hungarian Prime Minister Viktor Orban – Russian President Vladimir Putin's closest ally in Europe – accused the European Commission, which drafted the decision, of "systematically raping European law."
The vast majority of the funds – around EUR 193 billion ($225 billion) at the end of September – are held at Euroclear, a Belgian financial clearing house.
The money was frozen as part of sanctions the EU imposed on Russia over the war it started on February 24, 2022, but those sanctions must be renewed every six months and must be approved by all 27 member states.
Hungary and Slovakia oppose providing additional support to Ukraine.
The decision, taken on Friday under EU treaty provisions that allow the bloc to protect its economic interests in certain emergency situations, prevents them from blocking the extension of sanctions and makes it easier to seize assets.
Orban said on social media that it meant "the rule of law in the European Union comes to an end, and Europe's leaders are placing themselves above the rules."
"The European Commission is systematically raping European law. It is doing this in order to continue the war in Ukraine, a war that clearly isn't winnable," he said. He said that Hungary "will do everything in its power to restore a lawful order."
In a letter to Costa, Slovak Prime Minister Robert Fico said he would refuse to support any steps that "would include covering Ukraine's military expenses for the coming years."
He warned "that the use of frozen Russian assets could directly jeopardize U.S. peace efforts, which directly count on the use of these resources for the reconstruction of Ukraine."
