The decision, confirmed by the Danish EU presidency, marks a major breakthrough in ongoing efforts to unlock Russian-held assets for Ukrainian reconstruction.
A written procedure to formalize the move is expected to conclude Friday at 5 p.m., according to EU officials.
While the agreement does not immediately authorize the use of the assets for reparations or aid, it lays the legal groundwork for potential action. Work on financing for Ukraine in 2026–27 is ongoing, a source said.
The legal change is based on Article 122 of the EU’s founding treaty, which allows for financial assistance in exceptional circumstances. The European Commission argues this qualifies due to Russia’s invasion, despite criticism from some governments.
Belgium had previously opposed the move. On Wednesday, Belgian Prime Minister Bart De Wever raised legal objections, noting Ukraine is not an EU member. However, Finance Minister Vincent Van Peteghem said Thursday that the funds “will eventually have to be used” to aid Ukraine, though Belgium would not accept “easy compromises.”
The regulation will prohibit the return of frozen Russian funds and only requires approval by a qualified majority of member states—avoiding potential vetoes by countries like Hungary, which had sparked concerns during previous sanction renewals.
The permanent freeze applies specifically to assets held by Russia’s central bank and alters the legal basis for future EU decisions on their use.
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Source: PAP, IAR