The decision underscores the EU's commitment to limiting Russia's access to financial resources that could be used to escalate the conflict. In the absence of this prohibition, such resources could directly fund Russia’s military operations, exacerbate hybrid threats such as cyberattacks, misinformation campaigns, and infrastructure sabotage.

• Scope of prohibition: The Regulation bans any direct or indirect transfer of assets or reserves of the Central Bank of Russia, including those managed by entities like the Russian National Wealth Fund.
• Temporary nature: The measures will remain in effect until Russia ceases its aggression against Ukraine, provides sufficient reparations to support Ukraine’s reconstruction without harming the EU economy and no longer poses a serious economic threat to the EU.
• Reporting obligation: A broad range of natural and legal entities, including the European Central Bank must disclose an array of information to the European Commission including the identification of individuals or entities that hold or control relevant assets. Such information must be updated every three months.
• Safeguards: The regulation bars the enforcement of claims arising from contracts or transactions affected by the EU measures, where such claims are brought by the Russian government, designated Russian entities or persons acting on their behalf.
• Economic rationale: Allowing these transfers would risk prolonging the war, destabilising EU economies, and increasing fiscal burdens on member states. The EU has already faced significant economic disruptions, including energy price shocks, supply chain issues, and increased defence spending.
• Broader implications: The Regulation aligns with the EU’s broader strategy to strengthen resilience against hybrid threats and reduce dependency on external energy sources, as outlined in initiatives like REPowerEU.
• Review: By 31 December 2026 and every 12 months after, the European Commission will review this Regulation and present a report on the main findings of that review to the EU Council.

This measure highlights EU’s commitment to supporting Ukraine while prioritising the economic stability and security of the Union. By curbing access to key financial resources, the EU seeks to address the broader challenges posed by the ongoing conflict.

For more details, refer to the official press release here and the Council Regulation (EU) 2025/2600 here.