European Union leaders gather in Brussels on December 18, 2025, for a decisive vote on repurposing €210 billion ($246 billion) in frozen Russian central bank assets to provide Ukraine with up to €90 billion in loans for defense and reconstruction. This follows a December 12 agreement to indefinitely freeze the funds via emergency Article 122 powers, sidestepping veto risks from Hungary and Slovakia. The move addresses Ukraine’s €135.7 billion two-year funding gap, with Zelenskyy warning that failure signals weakness to Moscow.
Asset Freeze Details and Financial Scope
The EU’s indefinite immobilization covers €210 billion in Russian sovereign assets frozen since Moscow’s 2022 invasion, primarily €185 billion at Belgium’s Euroclear. Activated under Lisbon Treaty Article 122 for “threats to economic interests,” it eliminates six-month renewal votes, neutralizing pro-Russia stances from Budapest and Bratislava. Interest from these assets already aids Kyiv, but the principal now underpins a “reparations loan” repayable only if Russia compensates war damages—effectively a grant.
Ukraine Prime Minister Yulia Srydenko hailed it as a “landmark step toward justice,” noting it ensures “Russia pays for its crimes and destruction.” Germany offers €50 billion in guarantees, with Danish Finance Minister Stephanie Lose expressing optimism for summit progress despite lingering concerns. EU Council President António Costa affirmed: “Today we delivered on that commitment” to immobilize assets until Russia ends aggression and pays reparations.
| Key Figures | Amount | Purpose |
|---|---|---|
| Total Frozen Assets | €210B ($246B) | Indefinite freeze via Article 122 |
| Euroclear Holdings | €185B | Bulk in Belgium, legal target |
| Proposed Ukraine Loan | €90B over 2026-27 | Military, civilian needs |
| Ukraine’s Needs | €135.7B (2 years) | Defense, reconstruction |
Zelenskyy and Ally Statements
President Zelenskyy, visiting Berlin pre-summit, reiterated the stakes: assets must make Russian aggression “pointless” by securing Ukraine’s support into 2026. German Chancellor Friedrich Merz champions the plan, vowing funds will “enable Ukraine to protect itself against future attacks.” CDU MP Norbert Röttgen called it a “matter of destiny,” urging resolution “within a week’s time.”
Swedish Finance Minister Elisabeth Svantesson praised the freeze as “important in enabling support for Ukraine and protecting our democracy.” EU officials stress collective guarantees shield Belgium from solo liability in potential Moscow lawsuits. This builds on October pledges to maintain immobilization until reparations flow.
Oppositions and Hungarian-Slovak Risks
The indefinite freeze directly counters Hungary and Slovakia, whose Moscow ties threatened periodic blocks. Belgium’s PM Bart De Wever remains cautious, citing insufficient Commission safeguards against reprisals at Euroclear. Some leaders hesitate over legal and retaliation fears, complicated by US peace proposals involving asset releases.
A rejected 28-point US-Russia plan suggested sharing seized funds, dismissed by Kyiv and European backers. Critics warn of economic warfare escalation, but proponents frame it as justified restitution.
Russian Response and Legal Challenges
Russia condemns the scheme as “unlawful,” pursuing lawsuits against Euroclear in Moscow courts since 2022 for impairing fund management. The central bank asserts rights to “all available measures” for protection, with Kremlin vows of “consequences.” EU Vice President Valdis Dombrovskis dismissed these threats, emphasizing the bloc’s resolve.
Moscow’s actions underscore the high stakes, as the EU positions the loan to fund Ukraine’s 2026-27 budget without donor fatigue reliance.
Summit Implications and Path Forward
December 18’s European Council aims to finalize loan terms, guarantees, and risk-sharing. Success could unlock tens of billions, preventing assets’ use in unauthorized peace deals and bolstering Kyiv’s leverage. Failure risks Ukraine’s drone production and frontlines by April 2026.
This vote tests EU unity amid war fatigue, with frozen assets symbolizing accountability. Proponents argue inevitability: without them, not just Ukraine but the EU’s core mission falters. Outcomes will shape sanctions precedents globally.
