European Commission Resumes Work on Frozen Russian Assets

Resuming Review of Frozen Assets

In September 2026, the European Commission once again began exploring ways to utilize frozen Russian assets for the financial needs of the European Union. The amount involved is approximately €300 billion, frozen following the start of the special operation in Ukraine, with the majority held in the Belgian depository Euroclear. This initiative aims to find solutions that would allow these funds to support economic programs and aid Ukraine.

However, the European Commission’s proposal encounters significant legal and political obstacles, primarily from Belgium, where most of the Russian Central Bank’s assets are concentrated. The Belgian government demands guarantees on risk distribution and legal protection to prevent potential lawsuits from Russia.

The Role of Belgium and Euroclear in Asset Freezing

Belgium maintains control over a significant portion of Russian assets through Euroclear—a major depository involved in their custody and management. The country has imposed a ban on the use of these funds, fearing legal liability if Russia initiates court claims. The government insists on a «complete and legally flawless solution» that accounts for Euroclear’s obligations and provides protection against legal risks.

Euroclear itself does not have automatic insurance against confiscation or forced seizure of assets. The head of the depository has openly acknowledged the possibility of litigation in the event of confiscation attempts, which heightens Belgium’s concerns. The European Central Bank has refused to offer support should a crisis involving Euroclear arise, further complicating the situation.

Legal Risks and Potential Court Cases

The main legal risk lies in the possibility that decisions to seize assets could be contested in EU courts and international tribunals. Specifically, disputes might be heard by the Court of Justice of the European Union in Luxembourg, as well as the International Court of Justice in The Hague. Russia has already declared its intention to use all available legal mechanisms to protect its interests.

If the EU Court recognizes that the European Union regulation violates sovereign immunity norms or disproportionately restricts a state’s property rights, the contested provisions could be annulled, resulting in the return of assets. This necessitates meticulous legal structuring of all procedures and risk-sharing arrangements among EU countries.

Political and Economic Implications for the European Union

Using frozen Russian assets to finance programs within the EU and support Ukraine carries significant economic importance. The European Union has already partially funded Ukraine with these funds, but without clear rules and guarantees, several member states remain concerned. Germany, France, and other major EU economies are interested in reaching a compromise, yet legal issues remain a major stumbling block.

The lack of consensus among EU countries could delay decision-making and weaken financial support to Ukraine’s economy. Conversely, a successful resolution would channel substantial resources toward the recovery and development of regions affected by the crisis, strengthening Europe’s resilience to external economic challenges.

Outlook and Next Steps

The European Commission plans to develop new proposals that will be more acceptable to Belgium and other countries by addressing their demands for legal security and risk distribution. However, at present, no agreed-upon solution exists, and discussions continue amid high political tension.

A key factor will be establishing a legally airtight mechanism that allows the use of frozen assets without risking litigation. Achieving this requires alignment between EU member states, depositories, and European institutions, as well as a willingness to assume some financial responsibilities in case of potential claims from Russia.

Conclusion

The European Commission continues to seek a balance between economic benefits and legal safety in utilizing frozen Russian assets, which will be an important step in funding EU programs and supporting Ukraine.