European Union leaders are gathering in Brussels for a critical summit to decide on loaning Ukraine billions of euros from frozen Russian assets, a move aimed at keeping Kyiv’s war effort afloat amid urgent financial needs. The decision, expected on Thursday, represents a pivotal test of EU unity and resolve in supporting Ukraine against Russia’s invasion.
At the heart of the discussions is approximately €210 billion of Russian central bank assets frozen in the EU, most of it held by the Belgian clearing house Euroclear. The European Commission has proposed using these assets as collateral to secure a loan of around €90 billion for Ukraine over the next two years. This sum is crucial as Kyiv faces a funding shortfall that could deplete its resources by mid-2026, threatening its ability to sustain military operations and basic governance.
However, the plan faces significant opposition, primarily from Belgium, which harbors deep concerns about legal and financial risks. Belgian Prime Minister Bart De Wever has stated he has not seen sufficient guarantees to change his country’s position, emphasizing worries over potential lawsuits from Russia and liquidity issues. Other EU members, including Italy, Hungary, and Slovakia, have also expressed reservations, with some questioning the legal basis or preferring alternative financing methods.
The urgency is underscored by Ukraine’s dire financial situation. Without immediate EU support, officials warn that Ukraine could run out of money within months, potentially leading to a collapse in its war effort. EU foreign policy chief Kaja Kallas highlighted the stakes, saying, ‘We just can’t afford to fail. We have to show that we are strong,’ reflecting the bloc’s view that Russia’s war poses a direct threat to European security.
Leaders arriving at the summit stressed the importance of a solution. Polish Prime Minister Donald Tusk framed it starkly: ‘Now we have a simple choice – either money today or blood tomorrow. And I am not talking about Ukraine only, I am talking about Europe.’ European Commission President Ursula von der Leyen vowed not to leave the summit without an agreement, indicating the high priority placed on this issue.
Legal challenges complicate the matter. Russia has filed a lawsuit in Moscow seeking $230 billion in damages from Euroclear, arguing that the EU’s plans are illegal. This adds to Belgium’s apprehension, as it could be left bearing the financial burden if courts rule in Russia’s favor. Diplomats are working to craft guarantees that would protect Belgium and other concerned states, making the asset-based loan the most viable option despite the hurdles.
Alternative proposals, such as the EU borrowing against its budget or individual countries raising funds, face their own obstacles. The budget-based approach requires unanimity, which Hungary has threatened to veto, while national borrowing could exacerbate debt levels and lack long-term certainty for Ukraine. Consequently, the frozen asset plan is seen as ‘the only game in town’ by many diplomats, offering a large-scale solution without immediate fiscal strain on member states.
The outcome of the summit will have far-reaching implications. A successful agreement would demonstrate EU cohesion and provide Ukraine with a financial lifeline, bolstering its position in ongoing peace talks. Conversely, failure could undermine European credibility and leave Ukraine vulnerable, with potential consequences for regional stability. As leaders negotiate, the focus remains on finding a compromise that addresses Belgium’s concerns while ensuring Ukraine receives the support it desperately needs to continue its fight for sovereignty.
