EU Uses Emergency Powers to Freeze €210 Billion in Russian Assets Indefinitely

EU Freezes Russian Sovereign Assets Indefinitely Using Emergency Treaty Powers

The European Union has taken one of its most far-reaching financial actions since the start of the Ukraine conflict by invoking a special emergency provision to keep more than €210 billion in Russian sovereign assets frozen indefinitely . The move significantly strengthens long-term economic pressure on Moscow and marks a structural shift in the EU’s sanctions architecture.

Emergency Clause and Legal Framework

The decision was adopted under Article 122 of the EU treaties , which allows measures to be approved by a qualified majority vote , bypassing the usual requirement for unanimity among member states. By activating this clause, the EU removed the need for periodic renewal of asset freezes. Earlier sanctions were subject to sunset clauses, but the new regulation establishes the freeze as a permanent policy instrument unless explicitly reversed.

Scale and Custody of Frozen Assets

The regulation immobilises €210 billion belonging to Russian state and central-bank entities. Around €185 billion of this amount is held at Euroclear in Brussels , while the remaining €25 billion is lodged with private European financial institutions. These funds cannot be transferred, converted or accessed for any Russian financial operations.

Concerns From Financial Institutions

Some European financial actors have raised concerns about the long-term consequences of an indefinite freeze. Euroclear has warned that prolonged legal ambiguity could undermine investor confidence and expose European markets to litigation risks, particularly in cases involving sovereign debt instruments and international arbitration.

Geopolitical and Ukraine-Related Implications

For Ukraine, the decision strengthens the EU’s legal foundation for future discussions on potentially using immobilised assets for reconstruction and recovery . While no transfer has yet been authorised, the move signals that Brussels is preparing for a prolonged economic confrontation with Moscow and a more durable sanctions regime.

Exam Point

• Article 122 enables EU decisions without unanimous consent.

• €210 billion in Russian assets frozen indefinitely.

• Euroclear (Brussels) holds €185 billion of the total.

• The freeze targets Russian sovereign and central-bank assets .

• All previous sunset clauses removed .