• EU has indefinitely frozen Russian assets totaling around €210 billion.
• This move is aimed to prevent Hungary and Slovakia from vetoing aid to Ukraine.
• The assets will be used to support a massive loan for Ukraine's financial needs.
• Hungarian PM Viktor Orbán criticized the EU's decision as unlawful.
• Russia's Central Bank has initiated legal action against Euroclear regarding the frozen assets.

The European Union has taken a significant step by indefinitely freezing around €210 billion of Russian assets held in Europe. This decisive action is meant to ensure that countries like Hungary and Slovakia, which have maintained friendly relations with Moscow, cannot block the use of these funds to support Ukraine amid ongoing military and economic challenges. EU leaders plan to use a special economic emergency procedure to maintain this freeze until Russia concludes its war on Ukraine and provides compensation for the damages caused over the last four years, according to BBC and LA Times.

This move allows EU leaders to further develop a plan at an upcoming summit that includes using the frozen assets as collateral for loans to aid Ukraine's financial and military needs in the next two years. EU Council President António Costa emphasized this course of action as a follow-through on a commitment made in October to uphold the immobilization of Russian assets until Russia ceases its aggression and compensates for the damage inflicted on Ukraine, noted Al Jazeera and India Times.

The EU's action effectively removes the requirement for unanimous consent every six months to keep the asset freeze in place, a procedure that previously left it vulnerable to potential vetoes from Hungary and Slovakia. Both countries have expressed opposition to further military support for Ukraine, and Hungarian Prime Minister Viktor Orbán has condemned the EU commission's decision, stating it undermines legal norms within the EU, as reported by South China Morning Post and India Times.

In reaction to the EU's decision, the Russian Central Bank has already initiated legal proceedings against Euroclear, where a significant portion of these frozen assets are held. They argue these actions are illegal under international law, claiming violations of their sovereign rights to these funds. Belgian officials have also raised concerns about the legal and financial implications of the EU's "reparations loan" plan, further complicating the situation, according to BBC, LA Times, and South China Morning Post.