South Africa Defies EU — Rejects Plan to Freeze Russian Assets

June 24, 2026 3 min read

South Africa's Justice Minister Ronald Lamola confirmed on Tuesday that Pretoria has rejected a European proposal to freeze Russian sovereign assets tied to the ongoing conflict in Ukraine. The announcement marks a rare public divergence between South Africa and several Western governments pushing for aggressive financial measures against Moscow.

The Rejection

Lamola told reporters in Pretoria that South Africa would not support the European framework for seizing and freezing Russian state assets held abroad. The assets in question are estimated to run into hundreds of billions of dollars across European financial institutions. Lamola did not specify the exact amount of Russian assets held in South African accounts, citing diplomatic sensitivities.

The decision places South Africa alongside a handful of nations that have publicly declined to endorse the asset-freeze approach favoured by the European Union and its allies. Lamola stated that the proposal raises serious questions about international law and the precedent it would set for sovereign asset protection worldwide.

South Africa's Diplomatic History

South Africa has historically maintained a measured stance on the Ukraine conflict. Pretoria has called for dialogue and negotiation rather than economic isolation of Russia. This position reflects longstanding ties dating back to the apartheid era, when the Soviet Union provided support to the anti-apartheid movement.

Lamola emphasised that South Africa's foreign policy prioritises multilateral solutions through institutions such as the United Nations. He argued that unilateral asset seizures bypass established international legal frameworks and could destabilise the global financial system.

European Pressure Mounts

The European Union has been debating various mechanisms to use frozen Russian assets to fund Ukraine's reconstruction. Several EU member states favour a more aggressive approach, while others worry about legal and economic consequences. The proposal has gained urgency as the conflict in Ukraine continues into its third year.

European officials have been conducting outreach to nations with financial connections to Russia, seeking broad support for coordinated action. South Africa's rejection complicates those efforts and highlights the limits of Western diplomatic pressure in the Global South.

Economic and Legal Concerns

Finance ministry officials in Pretoria have privately expressed concern that endorsing the freeze could expose South African financial institutions to retaliatory measures. Russia holds assets and investments in multiple African nations, and several major banks operating in South Africa maintain correspondent relationships with Russian financial institutions.

Legal experts consulted by local media outlets argued that seizing sovereign assets without a UN Security Council mandate would violate established principles of international law. South Africa's constitution also requires the government to act within the bounds of its own legal commitments.

What Happens Next

European diplomats are expected to continue engagement with Pretoria in the coming weeks. The EU has proposed alternative frameworks that might address some of South Africa's legal concerns while still advancing the goal of holding Russian assets hostage to Moscow's behaviour.

Lamola indicated that South Africa remains willing to participate in multilateral discussions on the Ukraine conflict, including potential peace negotiations. He stopped short of saying Pretoria would consider the asset freeze if the proposal were modified to address international law concerns.

The question now is whether other nations will follow South Africa's lead or bow to continued European pressure. The next round of EU meetings on Russian asset utilisation is scheduled for next month, and officials in Brussels will be watching closely for any shift in Pretoria's position.