BRUSSELS/MOSCOW/KYIV - The Council of the European Union on Friday decided to prohibit any transfers of immobilized assets belonging to the central bank of Russia within the bloc back to Russia, citing the ongoing conflict in Ukraine.

"This decision was taken as a matter of urgency to limit damage to the Union's economy," the Council said in a statement.

The measure bans any direct or indirect transfer of assets or reserves of the central bank of Russia, as well as transactions involving "any legal person, entity or body acting on behalf of, or at the direction of, the central bank of Russia", it said.

European Council President Antonio Costa wrote on social media X that EU leaders were committed to keeping Russian assets immobilized in October's European Council meeting. "Today we delivered on that commitment," he said.

The statement called the step "temporary", but said it should remain in force as long as giving Russia major financial or other resources for its conflict in Ukraine causes, or could cause, serious economic problems for the EU and its member states.

The move would lock in assets estimated at around 210 billion euros ($247 billion). The bulk of the assets, approximately 190 billion euros, is held at Euroclear, a Belgium-based financial services company.

The money was frozen under EU sanctions imposed on Russia after the Russia-Ukraine conflict broke out in 2022. Those sanctions have to be renewed every six months by unanimous agreement of all 27 member countries.

Hungary and Slovakia oppose stepping up support for Ukraine, but Friday's decision means they will not be able to block the rollover of the sanctions, making it easier for the EU to keep the assets immobilized and move toward using them.

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"With today's decision, the rule of law in the European Union comes to an end, and Europe's leaders are placing themselves above the rules... Hungary protests this decision and will do everything in its power to restore a lawful order," Hungarian Prime Minister Viktor Orban wrote on X.

In a letter to Costa on Wednesday, Slovak Prime Minister Robert Fico said that he is "not in the position to support any solution to Ukraine's financial needs that would include covering Ukraine's military expenses for the coming years" at the next European Council.

The decision came a week ahead of the December European Council, where EU leaders are due to discuss how to implement their commitment to meet Ukraine's pressing financial needs in 2026-2027. At their October meeting, EU leaders failed to agree on a plan to use Russia's frozen assets in Europe to back a 140 billion-euro "reparation loan" for Ukraine, with Belgium emerging as the main holdout.

Russian central bank warns of legal action

On Friday, the Bank of Russia said it will take legal action in response to EU plans involving the use of its assets, warning that such measures violate international law and the principle of sovereign immunity.

The Russian central bank said in a statement that the mechanisms envisaged by regulations published by the European Commission, which allow for the direct or indirect use of its assets, are illegal. It added that any unauthorized use of its assets runs counter to international law.

The statement said the issuance and implementation of the EU regulations would lead the Bank of Russia to unconditionally challenge any actions resulting in the direct or indirect use of its assets without consent.

According to the bank, such challenges would be pursued through all available competent authorities, including national courts, judicial bodies of foreign states and international organizations, arbitration tribunals and other international judicial bodies.

It also said it would seek enforcement of relevant judicial decisions in the territories of United Nations member states.

Ukrainian drones downed over Mosow

Also on Friday, Russian air defense systems shot down over a dozen Ukrainian drones targeting Moscow, the city's Mayor Sergei Sobyanin said.

Sobyanin posted updates on social media in the day about defense forces destroying unmanned aerial vehicles flying toward the Russian capital, recording at least 13 drones downed.

The drone attacks have affected the civilian air traffic in Moscow. Authorities imposed a temporary restriction on flights for about an hour at three Moscow airports on Friday morning.

The Russian Defense Ministry said Friday that the air defense had downed 90 Ukrainian drones overnight across multiple regions, including four over the Moscow region.

Meanwhile, the ministry added, the Russian side carried out a series of strikes against targets in Ukraine over the past week, in response to alleged Ukrainian attacks on civilian facilities in Russia.

US-proposed "free economic zone" plan for Donbas

On Thursday, Ukrainian President Volodymyr Zelensky said that the United States had proposed creating a "free economic zone" in parts of the eastern Donbas region, which Ukraine would withdraw from under a negotiated peace with Russia.

The Russian side calls this a "demilitarized zone", Zelensky told media in Kyiv, adding that the compromise is that the Russian side will not advance into this area.

Although this might break the diplomatic deadlock, serious questions remain about who would manage the territory and how to ensure fair and reciprocal troop withdrawals, Zelensky was quoted by a CNN report as saying.

"If one side withdraws, as is being demanded of the Ukrainians, why doesn't the other warring party withdraw the same distance in the other direction?" Zelensky said, suggesting that Russia should also withdraw from land it currently holds.

He also questioned who would police the "free economic zone." "If some troops have to leave and other troops remain where they are, what exactly will prevent these other troops -- i.e. Russian troops -- from going further?" he said.

Zelensky confirmed that the proposed plan calls for a reciprocal withdrawal of Russian forces from the Sumy, Kharkiv, and Dnipropetrovsk regions. For the southern Ukrainian regions of Zaporizhzhia and Kherson, a freeze along the current front line is planned, he said.

Missile hits Turkish vessel in Ukraine

Separately, Turkiye expressed concern on Friday after a missile struck a Turkish-owned civilian ship at Ukraine's Chornomorsk port near Odesa, causing damage but no reported casualties, the Turkish Foreign Ministry said.

The ministry stated that the crew and drivers had been evacuated, and no Turkish citizens were reported injured. It added that Turkiye's consulate general in Odesa was monitoring the situation and providing support.

Ankara reiterated its concerns about the Russia-Ukraine conflict spreading into the Black Sea. It called for measures to prevent escalation, including suspending attacks targeting navigation safety, as well as energy and port infrastructure.

The vessel, the M/V CENK T, operated by Cenk Denizcilik, was hit by a ballistic missile around 1600 local time (1400 GMT) after berthing at the Chornomorsk terminal, the operator confirmed. The ship operates on the Karasu-Odesa route carrying trucks.

READ MORE: State Department: US, Ukraine agree on security framework

NATO chief urged to 'stop fueling war tensions'

In another development, Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto on Friday called on NATO Secretary-General Mark Rutte to stop "fueling war tensions" with remarks he has made about Ukraine. Szijjarto said Rutte's remarks were "irresponsible and dangerous."

Rutte has warned that "we are the Russians' next target," and that Russia "may be ready to attack NATO within five years." He has also underlined that "Ukraine's security is our security."

These remarks demonstrate a sharp turn by the NATO chief, Szijjarto said on social media, as well as demonstrating resistance to peace talks. The statements have "practically stabbed peace negotiations in the back", the Hungarian minister claimed.