EU leaders have pledged to cover Ukraine’s financial needs for the next two years but delayed a decision on using €140 billion in frozen Russian assets, citing legal complexities and concerns from Belgium. This move underscores the bloc’s commitment to supporting Kyiv’s defense against Russian aggression while navigating diplomatic and legal hurdles.
During a Brussels summit on Thursday, European Union leaders agreed to help support Ukraine’s “financial needs” for the coming years but stopped short of approving a controversial plan to release billions of euros from immobilized Russian funds. Instead, the final declaration asked the European Commission to develop options for financial support based on an assessment of Ukraine’s requirements, with a definitive agreement expected in December. The decision came after marathon talks, reflecting divisions among member states over the risks involved in repurposing Russian assets.
The proposed “reparations loan” would have tapped into €140 billion in Russian assets held by Euroclear, a Belgian clearing house, to provide direct funding for Ukraine’s war effort. However, Belgium expressed significant reservations, fearing potential legal challenges from Russia that could expose Euroclear to litigation and financial instability. Belgian Prime Minister Bart De Wever described the plan as “unchartered territory” and emphasized the need for concrete guarantees before proceeding, noting that any confiscatory measures would likely result in prolonged legal battles.
European Commission President Ursula von der Leyen acknowledged the complexity of the issue, stating that there are points to be clarified before moving forward. European Council President Antonio Costa struck a more positive tone, assuring that the bloc is committed to ensuring Ukraine has the resources it needs to defend itself. Ukrainian President Volodymyr Zelensky, who attended the summit, welcomed the outcome as a signal of political support for using Russian assets to aid Ukraine, though he had hoped for more immediate action.
The EU’s hesitation contrasts with recent US actions, where President Donald Trump imposed sanctions on Russia’s oil industry for the first time, targeting companies like Rosneft and Lukoil. Trump also canceled a planned meeting with Russian President Vladimir Putin, citing unproductive talks. These measures aim to curb Russia’s ability to fund its war, though Putin downplayed their impact, asserting they would not significantly affect Russia’s economic well-being.
In parallel, the EU adopted new sanctions targeting Russian oil revenues and three Chinese businesses involved in purchasing Russian crude oil. EU foreign affairs spokeswoman Kaja Kallas stated that the measures are designed to deprive Russia of war funds and send a message that “Russia can’t outlast us.” China condemned the sanctions, arguing they undermine China-EU economic cooperation, highlighting the broader geopolitical tensions surrounding the conflict.
Looking ahead, the focus shifts to a London summit on Friday, where UK Prime Minister Sir Keir Starmer will urge allies to boost long-range missile supplies to Ukraine. Zelensky is set to attend, along with other leaders, to discuss further military support. The delayed decision on frozen assets will be revisited in December, as EU leaders work to resolve legal concerns and solidify a unified approach to aiding Ukraine, ensuring that financial and military assistance remains robust in the face of ongoing Russian aggression.