EU leaders have gathered in Brussels for end-of-year discussions with a key choice on the use of frozen Russian assets to boost Ukraine’s defence in the war against Russia.
“We have a simple option: either funds now, or bloodshed in the future,” stated the Polish leader Donald Tusk. “I’m not talking about Ukraine only, I’m talking about Europe.”
The 27-nation bloc is scrambling to fortify Ukraine's position while ex-American leader Donald Trump advocates for a quick settlement to end the conflict as the invasion continues towards the fourth mark.
The Financial Crunch and the Proposed Solution
The EU estimates Ukraine needs an additional €135bn ($159bn) to remain solvent over the next two years, with the cash crunch expected to begin in the spring. To fill this gap, the EU's executive arm has proposed a plan to access some €210bn of Russian central bank reserves seized in the bloc.
Germany's leader Friedrich Merz argued the proposal was critical to increase the pressure on Vladimir Putin and send “a clear signal to the Kremlin.”
A Split Bloc: Opposition and Legal Doubts
However, a significant opposition bloc, led by Belgium—where the headquarters of the clearing house Euroclear, which holds the majority of the Russian assets—is voicing concerns about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered doubts.
From a procedural standpoint, this coalition may not be enough to veto the plan if a vote gets called under qualified majority rules. Yet in practical political terms, it makes the process very awkward for all parties concerned.
But there is little indication of a middle ground, as the alternative pathway—relying on EU joint borrowing—would require unanimous approval, and would likely be obstructed by Hungary, which categorically rejects any further help for Kyiv.
Leaders’ Comments Before the Talks
EU leaders have stated emphatically that the summit discussions will continue for however long it takes to achieve an agreement, warning that the future of Ukraine and Europe’s credibility are on the line.
- Ursula von der Leyen, the head of the EU executive, declared she would not depart from the meeting until an deal is concluded.
- In a stark contrast, Slovak Prime Minister Robert Fico allegedly joked that he could be kept until the new year, and he still wouldn’t support it.
- Ukrainian President Volodymyr Zelenskyy is scheduled to join the summit in a last-ditch effort to convince the skeptical nations.
Firm Resistance from Budapest
Hungary’s Prime Minister Viktor Orbán proved to be uncompromising, calling the idea of using frozen Russian funds “foolish” and equivalent to “marching into the conflict.” He voiced agreement for the Belgian cautious stance.
Appeals for Unity and a Resolution
Several other EU heads of state emphasized the critical need for a resolution.
- António Costa, President of the European Council, vowed: “Negotiations will continue on the issue today, if it’s necessary tomorrow, but we will never leave the summit before reaching a final decision.”
- Kaja Kallas, the EU’s top diplomat, noted that work to allay Belgian concerns and distribute the liability equally were continuing. She estimated the odds of a deal at “50/50.”
- Micheál Martin, the Irish leader, said his nation was “very much in favour” of using the frozen assets.
The stage is set for a potentially long and tense negotiation in Brussels, with the fate of significant monetary support for Ukraine resting in the balance.
