The European Union on Friday indefinitely froze Russian assets across Europe, preventing Hungary and Slovakia—both with Moscow-friendly governments—from vetoing their use to support Ukraine. The move applies to assets estimated at €210 billion ($247 billion) and ensures they cannot be used in any war-ending negotiations without EU consent.

EU Council President António Costa said the decision fulfils a commitment made in October to keep Russian assets immobilized until Russia ends its war on Ukraine and compensates for the damage caused. The freeze allows EU leaders to plan a “reparations loan” for Ukraine at a summit scheduled for December 18, ensuring financial and military support through 2026–27.

Most of the funds, around €193 billion ($225 billion), are held in Euroclear, a Belgian financial clearing house. While Hungary and Slovakia have historically opposed extending support to Ukraine, the EU’s emergency procedure prevents them from blocking sanctions renewals or the potential use of these assets.

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Hungarian Prime Minister Viktor Orbán denounced the move as a breach of EU law, while Slovak Prime Minister Robert Fico warned it could jeopardize U.S.-led peace efforts. Belgium has also expressed concerns about the financial and legal risks of the proposed “reparations loan” plan.

In response, Russia’s Central Bank filed a lawsuit against Euroclear in Moscow, claiming damages from the EU’s restrictions and describing plans to use the assets for Ukraine as illegal under international law. The EU, however, maintains that its actions are legally robust and aligned with international norms.

The asset freeze comes amid heightened tensions in Europe, including Germany summoning the Russian ambassador over allegations of sabotage, cyberattacks, and interference in elections. The EU’s move signals a decisive effort to both support Ukraine and assert control over frozen Russian funds.

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