Russia’s central bank has announced legal action against European lenders over frozen sovereign assets, escalating tensions as the EU drops plans to use Russian reserves to fund Ukraine and opts instead for a massive €90 billion loan.
Europe has approved a €90 billion ($105 billion) interest-free loan to keep Ukraine afloat through 2027, reserving the right to use frozen Russian assets. The deal salvages EU credibility amid deep divisions, US pressure, and Russian threats.
EU leaders postponed a decision on using €140 billion in frozen Russian assets to fund Ukraine’s defence, citing Belgian legal concerns, but pledged continued financial and military support through 2027.