The European Commission expects Russia to initiate further legal actions against the freezing of its assets but remains confident in the legal basis of its proposal to use these funds as a guarantee for loans to Ukraine, according to Economy Commissioner Valdis Dombrovskis.
Currently, €185 billion of Russian assets are frozen in the Brussels-based clearing house Euroclear. The Commission plans to use these assets to secure a “recovery loan” for Ukraine. However, Belgium strongly opposes the idea, citing significant legal and financial risks.
On Friday, Mr. Dombrovskis reiterated that the proposal was legally robust and fully aligned with international laws. He emphasised that “the assets are not seized, and the principle of sovereign immunity is respected.”
Additional protections for financial institutions holding Russian assets
Russia has already challenged the freezing of its assets in a Moscow court. Mr. Dombrovskis anticipates further legal actions from Russia to contest any compensation plan involving Russian funds for damages caused in Ukraine.
To safeguard against such legal challenges, the EU has included “additional protections” for financial institutions holding Russian assets under its sanctions regime and within the loan proposal for Ukraine, the Commissioner clarified.
Russia’s legal announcement coincides with deliberations among EU Member States about adopting an emergency law to freeze Russian assets indefinitely. Such a measure would eliminate the need to renew the freeze every six months, avoiding potential objections from Hungary or other nations.
Strong guarantees for Belgium
Next week, EU leaders will convene to decide on Ukraine’s financial aid. The proposal to back the loan with Russian assets remains the sole plan under consideration by the 27 Member States, to Belgium’s frustration.
Mr. Dombrovskis stated that the Commission had introduced “strong guarantees” for Belgium and was willing to explore additional ways to address its concerns.
A qualified majority vote among the 27 members will be enough to approve the recovery loan. While Belgium’s opposition or abstention cannot block the measure, the Commission hopes to secure Belgium’s support to send a strong political message.
Hungary, Slovakia reaffirm opposition to using frozen Soviet funds
Hungary and Slovakia reaffirmed their opposition on Friday to using Russian funds for Ukraine. Slovak Prime Minister Robert Fico wrote on social media platform X that while his government supports Ukraine’s reconstruction, it will not provide military aid.
The European Commissioner also noted that he had asked G7 nations and other international donors to bring forward their financial support for Kyiv to the first quarter of 2026. Even with approval by EU leaders next week, financial aid from the EU cannot reach Ukraine before the second quarter of 2026.
