EU Blocks Repatriation of Russian Central Bank Funds
"This decision was taken as a matter of urgency to limit damage to the Union's economy," the Council declared in an official statement.
The prohibition blocks all direct and indirect asset transfers involving Russia's central bank reserves, including transactions through "any legal person, entity or body acting on behalf of, or at the direction of, the central bank of Russia," according to the measure.
European Council President Antonio Costa announced via X that EU leadership had pledged to maintain the asset freeze during October's European Council session. "Today we delivered on that commitment," he wrote.
Though labeled "temporary," the statement indicated the restriction will persist as long as providing Russia with substantial financial or other resources for its Ukraine military campaign threatens to trigger severe economic damage to the EU and its 27 member nations.
The decision effectively secures approximately 210 billion euros ($247 billion U.S. dollars) in immobilized funds. The vast majority—roughly 190 billion euros—sits frozen at Euroclear, a Belgium-based financial services corporation.
These funds were initially seized under EU sanctions implemented against Russia following the 2022 outbreak of the Russia-Ukraine conflict. Previously, those sanctions required unanimous six-month renewal votes from all 27 member countries.
Hungary and Slovakia have resisted expanding assistance to Ukraine, but Friday's action eliminates their ability to obstruct sanction renewals, streamlining the EU's capacity to keep assets frozen and advance toward utilizing them.
Hungarian Prime Minister Viktor Orban unleashed fierce criticism via X: "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."
In correspondence sent to Costa Wednesday, Slovak Prime Minister Robert Fico stated 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 upcoming European Council.
The announcement arrives one week before December's European Council summit, where EU leaders will address implementing their commitment to satisfy Ukraine's urgent financial requirements for 2026-2027. At their October gathering, EU leaders deadlocked over a proposal to leverage Russia's frozen European assets as collateral for a 140 billion-euro "reparation loan" to Ukraine, with Belgium serving as the primary obstacle.
The Bank of Russia responded Friday by vowing legal retaliation against EU plans involving its assets, cautioning that such actions breach international law and sovereign immunity principles.
A Russian state news agency reported that the Bank of Russia filed litigation against the Euroclear depository in Moscow Arbitration Court on Friday. The lawsuit alleges damages inflicted on the Central Bank through Euroclear's unlawful conduct.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
