BRUSSELS, December 12, 2025: European Union member states have reached an agreement to indefinitely immobilise frozen Russian assets, marking a major policy shift in the bloc’s response to Russia’s invasion of Ukraine. The decision, announced on Thursday under the Danish presidency of the EU Council, overrides Belgium’s reservations and establishes a legal basis for maintaining the freeze without periodic renewals. The Danish presidency confirmed that EU governments have “agreed on a revised version of the Article 122 proposal” and will proceed with a written procedure for formal Council approval by Friday at 5 p.m. local time. The presidency added that the agreement was backed by a “very clear majority” of member states, signalling broad political alignment across the bloc.
The immobilisation covers Russian state assets already frozen under European sanctions, introduced in response to Moscow’s full-scale invasion of Ukraine in February 2022. Much of these assets estimated at around €190 billion are held by the Brussels-based financial depository Euroclear. The new framework removes the need for semi-annual renewals of the freeze, which previously required unanimous approval by all 27 EU members. The move is intended to secure the legal and financial foundations for a reparations loan to Ukraine, a mechanism that would allow Kyiv to receive funding backed by the future use of profits from these immobilised assets. EU officials have argued that indefinite immobilisation is essential to protect the plan from potential political disruption, particularly from governments opposed to extending sanctions or altering the terms of asset freezes.
Denmark confirms majority backing across member states
Belgium had initially raised concerns over the legal and financial implications of the measure, given that Euroclear, one of the world’s largest securities clearing houses, is headquartered in Brussels. Belgian authorities had sought to ensure that the decision would not expose the country to liability risks or legal disputes over ownership of the frozen funds. Despite these concerns, the Danish presidency confirmed that the compromise proposal had received near-unanimous support. Under current EU law, sanctions against Russia must be renewed every six months through a unanimous vote of member states. Thursday’s decision effectively decouples the asset freeze from that renewal process, insulating it from political obstruction by any single government.
Next steps for formal adoption by the EU Council
The measure is seen as a direct response to concerns that Hungary, which has repeatedly criticised sanctions on Moscow, could veto future renewals and disrupt EU support for Ukraine. The indefinite immobilisation of Russian assets represents one of the EU’s most consequential financial actions since the start of the conflict. It reflects growing momentum within the bloc to convert frozen Russian assets into concrete assistance for Ukraine, while navigating the complex legal issues surrounding state property and international law. The formal adoption of the measure on Friday is expected to pave the way for discussions on how the resulting financial mechanism will be implemented in early 2026. – By EuroWire News Desk.