THE EU STRIKES BACK... SORT OF
On December 12th, the European Union indefinitely froze Russian assets under its jurisdiction, using a special procedure permitted in economic emergencies. The act froze the assets until Russia ceases its war on Ukraine and provides Ukraine compensation for wartime damages. It also ensures that the Moscow-friendly governments of Hungary and Slovakia can't block the funds from being used for support of Ukraine – a possibility that had gridlocked EU policymaking in recent weeks. The act likewise prevents the roughly 210 billion Euros from being used in negotiations to end the war in Ukraine without EU approval.
In response, Russia's Central Bank stated that it had filed a lawsuit in Moscow against financial clearinghouse Euroclear for damages allegedly caused by preventing Moscow from managing its assets. It also claimed that the EU's efforts to use the assets to support Ukraine are "contrary to international law" because they violate the sovereign immunity of assets. However, EU Economy Commissioner Valdis Dombrovskis said that the EU decision was "legally robust." (Associated Press, December 12, 2025)
[EDITORS' NOTE: The freeze may be legally sound, but the funds remain immobile. Despite repeated entreaties, Belgian President Bart De Wever has proved unwilling to use the escrowed Russian funds in support of Ukraine. De Wever's participation is vital, because the bulk of the funds in question are held in Belgian financial institutions.]
A RETURN TO THE RUSSIAN EMPIRE AS COSSACKS FIGHT IN UKRAINE
Today in Russia, there are around 180,000 registered Cossacks - a semi-nomadic warrior cultural minority that has historically lived in autonomous communities in present-day Ukraine and southwest Russia. Of these, over 60,000 have fought in Ukraine since the start of the current conflict in February 2022. Cossack identity was suppressed by the Kremlin during Soviet times, but President Vladimir Putin's regime has sought to integrate the Cossacks into Russian society by formalizing their work as border guards, urban militias, and police auxiliary forces.
To that end, Putin has consolidated 11 registered Cossack armies under the All-Russian Cossack Society and given himself the exclusive right to appoint its leader. Further, in March 2023, Putin began the process of establishing a "Cossack reserve army," which could provide an additional 60,000 troops for the Kremlin's war effort in Ukraine. Additionally, there are currently 31 known specialized schools designed to educate Cossack cadets in the Russian national curriculum and Cossack traditions and warfare. And recently, Russian occupation authorities have introduced a Cossack Corps in Russian-occupied Ukrainian territories as part of ongoing colonization and indoctrination efforts. Through these moves, experts have speculated, Putin may be setting conditions to try to push the Cossacks as a "new Russian elite" loyal to his regime. (France24, December 15, 2025)
RUSSIA'S MASSIVE WAR SPENDING
Russian Defense Minister Andrey Belousov announced on December 17th that the country's spending on the war in Ukraine will reach 5.1% of GDP by the end of 2025. This places Russia's total war-related expenditures at approximately $137.9 billion for this year. Russia's national defense spending now exceeds government spending on social policy and the economy combined. Belousov's comments mark the first time that the Russian Ministry of Defense has disclosed its direct spending on the war. (Meduza, December 17, 2025)
EUROPE'S PLAN B
After a proposal to provide frozen Russian sovereign assets housed in Belgium to Ukraine failed to pass, EU leaders have agreed to provide Kyiv with a loan of 90 billion Euros, borrowed against the bloc's shared budget. To avoid opposition from the Czech Republic, Hungary, and Slovakia, who have stated they would not support using EU cash to fund Ukraine, these three countries will not have any financial obligations under the agreement. The bill will fund Ukraine for 2026 to 2027, and Ukraine will only have to repay the loan once Russia pays reparations. Russia's assets will remain frozen in Europe and could possibly be used to repay the loan if Moscow refuses to pay reparations. While a win for Ukraine, the agreement is a political blow to German Chancellor Friedrich Merz and European Commission president Ursula von der Leyen, because the loan will be borrowed against EU taxpayer funds rather than Russian cash. (Financial Times, December 19, 2025)