The European Union has agreed to indefinitely freeze hundreds of billions of euros in Russian sovereign assets, paving the way for a major long-term loan package aimed at supporting Ukraine as the war with Russia continues.
Until now, the freezing of Russian state funds — estimated at around €210 billion and largely held in European financial institutions — had to be renewed every six months, leaving the policy vulnerable to political opposition from individual member states. Under the new decision, the assets will remain frozen without a fixed end date, significantly reducing the risk of future reversals.
EU officials say the move is designed to safeguard a proposed multi-year loan plan for Ukraine, which would rely on the immobilised Russian funds as financial backing. The loans are expected to help cover Ukraine’s military, reconstruction and budgetary needs in the coming years, as Western governments look for sustainable ways to maintain support.
European leaders argue that keeping the assets frozen sends a clear signal that Russia cannot escape financial accountability for the damage caused by the invasion of Ukraine. They stress that the funds will remain inaccessible until Moscow ends the war and compensates Ukraine.
Russia has condemned the decision, calling it unlawful and warning of retaliation. Legal challenges are also expected, raising concerns among some EU states about financial and legal risks.
Despite internal disagreements, the decision reflects a growing consensus within the bloc that long-term support for Ukraine requires stronger and more permanent financial measures. Final details of the Ukraine loan plan are expected to be discussed at an upcoming EU summit.
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