The European Union is moving to permanently secure frozen Russian assets worth over $150 billion, with a decision expected at the European Council session this week, European Commission President Ursula von der Leyen said in an interview with Politico on 11 December 2025.
The move would end the current system requiring unanimous renewal every six months—a vulnerability von der Leyen described as carrying "quite a risk that all of a sudden these assets are gone." The European Council votes on 18-19 December, with Belgium still demanding stronger guarantees. Ukraine's budget reserves are projected to run dry by April.
EU plan to permanently immobilize Russian assets
Under the proposed framework, cash balances from the immobilized assets would fund Ukraine through loans with a crucial condition: "Ukraine only has to pay back these loans if Russia pays reparations," von der Leyen explained.
Belgium, which hosts Euroclear—the financial depository containing the bulk of frozen Russian assets—remains the key holdout. Von der Leyen described ongoing negotiations as "day and night" work, acknowledging that "Belgium is carrying on broad shoulders the whole of the European Union."
"This is not trivial. This is absolutely innovative. It's never happened before," she said of the legal mechanism being developed.
Ukraine peace deal: three sticking points in 20-point plan
Von der Leyen outlined the most contentious elements in ongoing Ukraine peace negotiations:
- Territories: "This is something which can only be decided by President Zelenskyy and the people of Ukraine"
- Security guarantees: Must be "very robust" to ensure Ukraine becomes a "steel porcupine" that is "indigestible for any potential invader"
- Russian assets: The immobilization must be secured to fund Ukraine's reconstruction over the next two years
The Commission President repeatedly emphasized her concern about repeating the failures of the Minsk agreements: "We've seen that the peace agreement and the security guarantees were not holding, were not robust enough, and that the peace agreement was only giving time for Russia to regroup, to reorganize, and the next invasion then came in 2022."
EU defense spending surges to 800 billion euros
When asked how long until Europe can fully defend itself, von der Leyen offered no timeline but stressed urgency: "We have not the luxury of time."
Key figures from von der Leyen's defense overview:
- 800 billion euros in defense investment enabled through 2030
- 150 billion euros allocated to the SAFE instrument, now "oversubscribed"
- 8 billion euros invested in defense at EU level over the previous decade
"During the last year, more has happened than during the last decades in the European Union," von der Leyen said, citing the bloc's first full-time defense commissioner and defense white book.
Von der Leyen responds to Trump's "decaying Europe" remarks
Days after Trump called European leaders "weak" in a Politico interview, von der Leyen declined to engage directly. "I have always had a very good working relationship with the presidents of the United States, and this is also the case today," she said. "From the bottom of my heart, I'm a convinced transatlanticist."
She pivoted instead to European self-reliance: "What is our position? What is our strength? Let's work on these. Let's take pride in that. Let's stand up for a unified Europe."
Asked about Trump's National Security Strategy, which calls for US policy to "cultivate resistance" to the EU, von der Leyen referenced the proposed "democracy shield"—a notable response given the question concerned Washington, not Moscow.
EU financial and military support for Ukraine since 2022
Von der Leyen emphasized the scale of European commitment since Russia's full-scale invasion:
- 185 billion euros in total EU financial support to Ukraine
- 66 billion euros in military aid
- Russia's territorial gains in the past 12 months: 1 percent
"It is Russia that invaded Ukraine, and the war will be over at the moment Russia stops fighting," she said.
The European Council session on 18-19 December will determine whether member states can reach consensus on the asset immobilization framework and the qualified majority voting mechanism for distributing associated risks.
