The European Union has announced plans to indefinitely freeze Russian assets held within the bloc, in a move aimed at ensuring up to $246 billion in Russian funds remain in EU jurisdictions, officials said on Friday.

EU foreign policy chief Kaja Kallas confirmed the decision on X, stating that the freeze will remain in place unless Russia fully compensates Ukraine for the damages caused by its war of aggression.

European Commission President Ursula von der Leyen described the move as a "strong signal" to Moscow, signalling that the financial costs of the war will continue to rise. European Council President António Costa added that the decision honours commitments made during the October European Council meeting to keep Russian assets immobilised until the conflict ends and reparations are paid.

The bloc plans to use the frozen funds to support Ukraine, with an estimated 90 billion dollars potentially available, either through direct borrowing or via assets held at Euroclear, Belgium’s main depository for frozen Russian funds.

Belgium, however, has expressed concerns over the proposal, citing potential legal challenges, financial liability and warning that moving too quickly could undermine fragile diplomatic channels aimed at ending the conflict. The Belgian government has sought amendments to the EU Commission’s initial plan to mitigate these risks and provide stronger protection for Euroclear.

Russia’s central bank denounced the plan as illegal and warned it may pursue legal action to contest the use of its frozen assets.

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