EU emergency procedure immobilizes Russian Central Bank holdings The European Union invoked a special economic‑emergency mechanism on 12 December 2025 to freeze roughly €210 billion of Russian Central Bank assets located in Europe indefinitely. The action follows an October pledge to keep the funds immobilized until Russia ends its war and compensates for damage. The freeze applies to assets managed by Euroclear and other custodians across the bloc. Both the Associated Press and CNN report the decision as a direct response to stalled sanctions negotiations [1][2].

Freeze stops Hungary and Slovakia from derailing Ukraine support Hungary and Slovakia, whose governments maintain close ties with Moscow, have repeatedly opposed expanding aid to Kyiv. By locking the assets, the EU removes their ability to veto the renewal of sanctions or to leverage the funds in negotiations. The move ensures that future financial packages for Ukraine cannot be blocked by these member states. The articles agree that the freeze specifically targets the political leverage of the two countries [1][2].

Assets earmarked for a multi‑year Ukraine loan EU leaders plan to use the immobilized funds as collateral for a large loan to Ukraine covering the 2026‑27 fiscal period. The loan, intended to meet both financial and military needs, will be debated at a summit on 18 December chaired by Council President António Costa. The loan proposal is part of a broader strategy to sustain Kyiv’s war effort without further reliance on direct budget contributions. Both sources note the loan’s centrality to the EU’s Ukraine policy [1][2].

Russian Central Bank sues Euroclear over asset freeze On the same day, the Russian Central Bank filed a lawsuit in Moscow against Euroclear, alleging illegal seizure and violation of sovereign immunity. EU Economy Commissioner Valdis Dombrovskis defended the legality of the freeze, predicting continued Russian legal challenges. The lawsuit underscores the heightened financial confrontation between the EU and Russia. The AP article emphasizes the legal robustness claim, while CNN repeats the lawsuit details [1][2].

CNN highlights additional diplomatic friction CNN reports that Ukraine rejected a 28‑point plan proposed by U.S. and Russian envoys to release the assets, a detail absent from the AP piece. It also notes Belgium’s warning that the proposed reparations loan carries significant economic, financial, and legal risks, urging risk‑sharing among EU members. These points illustrate broader dissent within the EU regarding the loan’s structure. The discrepancy shows CNN’s broader coverage of intra‑EU debate [2].