EU Backs Indefinite Freeze on Russia’s Frozen Cash

European Union (EU) governments have agreed to indefinitely immobilize Russian assets worth up to €210 billion (£185 billion) that have been frozen in the EU since the start of Russia’s full-scale invasion of Ukraine, Paul Kirby reported for BBC News.

Most of Moscow’s cash is held at Belgian bank Euroclear. (Photo: Marek Śliwecki Wikimedia Commons) 

Most of Moscow’s cash is held at Belgian bank Euroclear, and European leaders hope to agree on a deal at next week’s crunch EU summit that would use the money for a loan to help Kyiv fund its military and economy.

After nearly four years of Russia’s full-scale war, Ukraine is running out of cash and needs an estimated €135.7 billion (£119 billion; $159 billion) over the next two years.

Europe aims to provide two-thirds of that amount, but Russian officials accuse the EU of theft. Russia’s central bank said Friday that it is suing Belgian bank Euroclear in a Moscow court in response to the EU loan plan.

Russia’s assets in the EU were frozen within days of the full-scale invasion of Ukraine in February 2022, and €185 billion of that total is held by Euroclear.

The EU and Ukraine argue the money should be used to rebuild what Russia has destroyed. Brussels has described the proposal as a “reparations loan” and has outlined a plan to support Ukraine’s economy to the tune of €90 billion.