The EU Will Keep Russian Assets Frozen Until Moscow Pays Reparations to Ukraine

Russian sovereign assets frozen in the European Union due to sanctions will remain under seizure until Moscow pays reparations to Ukraine. If Russia refuses to pay, the EU reserves the right to use the funds to repay financial support for Kyiv.

European Commissioner for the Economy Valdis Dombrovskis said this in Brussels on the sidelines of a meeting of the EU Economic and Financial Affairs Council. His statement was quoted by “European Pravda”.

“We have provided that, under the loan we are providing to support Ukraine, Kyiv will be required to repay it only after Russia pays reparations,” Dombrovskis said.

According to him, the European legal framework explicitly states that the bloc may use the frozen Russian sovereign assets if reparations are not paid.

“If Russia does not pay reparations, we have explicitly provided that the European Union reserves the right to use the frozen Russian sovereign assets,” the European Commissioner said.

Loan for Ukraine Amounts to Up to 90 Billion Euros

This concerns an EU loan programme worth up to 90 billion euros for 2026 and 2027. It is financed through loans raised by the European Union on the capital markets and backed by the bloc's budget. According to the Council of the EU, repayment by Ukraine should begin only after Russian reparations have been received.

Of the total amount, 30 billion euros is intended for macro-financial and economic support, while 60 billion euros is for strengthening the defence industry and purchasing military equipment. As of 5 November, 19.8 billion euros had already been disbursed under the programme. The latest tranche amounted to 4.36 billion euros, of which 3.7 billion was for budget support and 658 million euros was for defence needs.

Around 210 Billion Euros Blocked in the EU

Around 210 billion euros in assets belonging to the Central Bank of Russia have been immobilised within the EU. The bloc is already using the extraordinary revenues generated by these funds to support Ukraine, but the assets themselves remain frozen. According to data from the Council of the EU, they have so far generated around 8 billion euros in extraordinary revenues, of which 3.8 billion euros has reached Ukraine.

The decision on the future use of Russian assets does not mean that the EU is confiscating them immediately. It leaves open the possibility of using the funds if necessary to repay the loan should Russia fail to meet its obligation to provide compensation. The European Council has formulated this position as a right reserved by the bloc, to be exercised in accordance with European and international law.

Sources: europulse.today, kyivindependent.com, kyivpost.com