UPDATE: The European Union has just announced a monumental decision to indefinitely freeze Russian assets in Europe to prevent Hungary and Slovakia from vetoing their use for Ukraine’s urgent needs. This decisive action aims to ensure that billions of euros can be mobilized to support Ukraine amidst ongoing conflict.
As tensions escalate, EU leaders have moved swiftly to block around €210 billion (approximately $247 billion) in Russian assets, effectively sidelining the Moscow-friendly governments of Hungary and Slovakia. Under a special economic procedure invoked for emergencies, these assets will remain frozen until Russia ceases its aggression against Ukraine and compensates for the extensive damage inflicted over the past four years.
EU Council President António Costa emphasized the significance of this decision, stating, “This is a key step that allows us to proceed with plans to utilize these funds to assist Ukraine with its financial and military needs for the upcoming years.” The EU plans to address this critical financial aid during an upcoming summit on December 18, 2025.
This move directly impacts the ongoing humanitarian crisis in Ukraine, where the EU has already committed nearly €200 billion (around $235 billion) in support. The freezing of these assets prevents Hungary and Slovakia from obstructing the sanctions intended to maintain pressure on Russia.
In a sharp rebuke, Hungarian Prime Minister Viktor Orbán, a staunch ally of Russian President Vladimir Putin, criticized the decision, claiming it undermines the rule of law in the EU. Orbán declared on social media that the European Commission is “systematically raping European law” in its bid to continue the war in Ukraine, labeling the EU’s actions as a dangerous precedent.
Slovak Prime Minister Robert Fico echoed Orbán’s sentiments, expressing his opposition to any initiative that would allocate frozen Russian assets for Ukraine’s military expenses. He warned that such actions could jeopardize U.S. peace efforts reliant on these resources for Ukraine’s reconstruction.
The European Commission argues that the war has severely impacted the EU’s economy, driving energy prices up and hindering growth. By immobilizing these funds, the EU aims to shield its economic interests while ensuring Ukraine has the necessary resources to withstand Russian aggression.
With the majority of the frozen assets, approximately €193 billion (about $225 billion), held in Euroclear, a Belgian financial clearinghouse, the EU’s strategy hinges on overcoming internal opposition. The Commission’s approach allows it to navigate the complexities of obtaining unanimous approval for sanctions, particularly from Hungary and Slovakia, who have resisted further support for Ukraine.
Russia’s Central Bank has responded by filing a lawsuit against Euroclear, claiming damages from the asset freeze. Russian authorities have labeled the EU’s plans to utilize these funds for Ukraine as “illegal” and contrary to international law, citing breaches of sovereign immunity principles.
As this situation develops, the world watches closely, recognizing the potential ramifications on Ukraine’s stability, European unity, and the geopolitical landscape. The next steps will be crucial as EU leaders convene to finalize plans for securing Ukraine’s financial future, aiming to deliver necessary support amidst an ongoing conflict that has reshaped Europe’s security dynamics.
Stay tuned for more updates as this story unfolds, reflecting the urgency and importance of these developments for Ukraine and the broader international community.
