BRUSSELS — European Union governments have agreed to indefinitely immobilise Russian assets worth up to €210 billion that have been frozen in the EU since the start of Russia war in Ukraine.

Most of the Russian funds are held at Belgium-based clearing house Euroclear, and European leaders are seeking agreement at next week’s EU summit on using the assets to back loans for Ukraine’s military and economic needs.

After nearly four years of war, Ukraine faces a severe funding shortfall and is estimated to need €135.7 billion over the next two years. Europe aims to cover around two-thirds of that amount, while Russian officials have accused the EU of theft.

Russia’s central bank said on Friday it had filed a lawsuit against Euroclear in a Moscow court in response to the EU’s plans.

EU officials argue it is justified to use the frozen funds to help rebuild Ukraine. Ukrainian President Volodymyr Zelensky said it was “only fair” that Russian assets be used to repair the damage caused by the war, while German Chancellor Friedrich Merz said the funds would help Ukraine defend itself against future Russian attacks.

Russia’s assets were frozen in February 2022, with about €185 billion held at Euroclear.

Until now, the EU has avoided using the assets directly, instead transferring windfall profits from the funds to Ukraine. In 2024, those profits amounted to €3.7 billion.

With international military aid declining sharply in 2025 and the United States significantly reducing funding under President Donald Trump, the EU has faced growing pressure to find new financing options.

Two EU proposals are under discussion to provide Ukraine with €90 billion. One would raise funds on capital markets backed by the EU budget, while the other would involve lending cash generated from the immobilised Russian assets, which have largely matured into liquid funds.

Belgium has raised concerns about legal and financial risks, warning it could face heavy liabilities if the plan backfires. Euroclear’s chief executive has also cautioned that using the assets could destabilise the international financial system.

In a key move, EU ambassadors agreed to use an emergency clause under Article 122 of the EU treaties to keep Russia’s central bank assets immobilised indefinitely, removing the need for a unanimous renewal vote every six months.

The assets would remain frozen as long as a threat to the EU’s economic interests persists or until Russia pays war reparations.

Belgian Prime Minister Bart De Wever said “very important decisions” would be taken in the coming days, stressing the need for strong guarantees to protect his country from financial exposure.

Several EU member states, including the Baltic nations, Finland and Poland, have urged swift action, calling the frozen-assets plan the most realistic way to sustain support for Ukraine.

Russia has strongly opposed any use of the funds, while Hungarian Prime Minister Viktor Orban criticized EU leaders for undermining the rule of law by moving ahead with the plan. — Agencies