BRUSSELS, Dec. 13 — The Council of the European Union (EU) on Friday decided to prohibit any transfers of immobilized assets belonging to the central bank of Russia within the bloc back to Russia, citing the ongoing conflict in Ukraine.
“This decision was taken as a matter of urgency to limit damage to the Union’s economy,” the Council said in a statement.
The measure bans any direct or indirect transfer of assets or reserves of the central bank of Russia, as well as transactions involving “any legal person, entity or body acting on behalf of, or at the direction of, the central bank of Russia,” it said.
European Council President Antonio Costa wrote on social media X that EU leaders were committed to keeping Russian assets immobilized in October’s European Council meeting.
“Today we delivered on that commitment,” he said. The statement called the step “temporary,” but said it should remain in force as long as giving Russia major financial or other resources for its war in Ukraine causes, or could cause, serious economic problems for the EU and its member states.
The move would lock in assets estimated at around 210 billion euros (247 billion U.S. dollars). The bulk of the assets, approximately 190 billion euros, is held at Euroclear, a Belgium-based financial services company.
The money was frozen under EU sanctions imposed on Russia after the Russia-Ukraine conflict broke out in 2022. Those sanctions have to be renewed every six months by unanimous agreement of all 27 member countries.
Hungary and Slovakia oppose stepping up support for Ukraine, but Friday’s decision means they will not be able to block the rollover of the sanctions, making it easier for the EU to keep the assets immobilized and move toward using them.
“With today’s decision, the rule of law in the European Union comes to an end, and Europe’s leaders are placing themselves above the rules… Hungary protests this decision and will do everything in its power to restore a lawful order,” Hungarian Prime Minister Viktor Orban wrote on X.
In a letter to Costa on Wednesday, Slovak Prime Minister Robert Fico said that he is “not in the position to support any solution to Ukraine’s financial needs that would include covering Ukraine’s military expenses for the coming years” at the next European Council.
The decision came a week ahead of the December European Council, where EU leaders are due to discuss how to implement their commitment to meet Ukraine’s pressing financial needs in 2026-2027.
At their October meeting, EU leaders failed to agree on a plan to use Russia’s frozen assets in Europe to back a 140 billion-euro “reparation loan” for Ukraine, with Belgium emerging as the main holdout.
The Bank of Russia said on Friday that it would take legal action in response to EU plans involving the use of its assets, warning that such measures violate international law and the principle of sovereign immunity.
According to the Russian state news agency Tass, the Bank of Russia filed a lawsuit against the Euroclear depository in the Moscow Arbitration Court on Friday.
The lawsuit claims damages caused to the Central Bank by Euroclear’s illegal actions. (Namibia Daily News / Xinhua)
