EU agrees to indefinitely freeze Russian central bank assets

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00:00A crucial backstop for much-needed funding.

00:03The EU is using emergency powers to indefinitely freeze Russian state assets in Europe,

00:08a move aimed at propping up Ukrainian state coffers,

00:11which are quickly running out of cash as the Trump administration

00:14increasingly takes Moscow's side in the push for a peace deal.

00:18The Americans stopped bankrolling Ukraine without the European financial guarantees.

00:25Ukraine would not be able to survive financially.

00:28Some 210 billion euros belonging to Russia's central bank

00:32are blocked in Europe under EU sanctions,

00:35the majority of those funds held by the Belgian financial clearinghouse Euroclear.

00:40Europe has been using the interest generated by the money

00:43to provide some 50 billion euros in loans to Kyiv, but that interest is declining.

00:48The EU now plans to use the entirety of the frozen Russian funds,

00:52first to underwrite a 165 billion euro interest-free loan

00:57that will fund Ukraine's civilian and military budgets through 2027,

01:01and to help repay a previous 45 billion euro loan from the G7.

01:06Ukraine would only be required to repay the 165 billion

01:10when Russia ends its war and pays reparations to Kyiv.

01:14Belgium, the home of Euroclear, has been loath to approve the plan,

01:18fearful of legal jeopardy, as Russia, which calls it theft,

01:21sues to get its money back.

01:23It is not acceptable to use the money and leave us alone facing the risks.

01:30The indefinite freeze is intended to prevent EU countries that are friendly with the Kremlin,

01:35like Hungary and Slovakia, from vetoing the renewal of the asset-blocking sanctions.

01:40It's also aimed at preventing the U.S. from trying to return the funds as part of a lopsided peace deal.

01:46The European Council is set to meet December 18th to hammer out the final details of the reparations loan,

01:52including how to guarantee Belgium that, come what may,

01:56it won't find itself on the hook to repay Russia alone.

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