EU leaders have gathered in the Belgian capital to hold end-of-year talks with a pivotal choice regarding using frozen Russian Federation funds to strengthen Ukraine’s defence in the war against Moscow.
“We have a simple option: either money now, or bloodshed in the future,” warned Poland’s leader Donald Tusk. “This isn't just about Ukraine only, I’m talking about the entire continent.”
The 27-nation bloc is scrambling to fortify Ukraine's position while former U.S. President Donald Trump advocates for a quick deal to halt the conflict as the invasion continues towards the four-year anniversary.
The Financial Crunch and the Proposed Plan
European officials calculate Ukraine requires an additional €135bn ($159bn) to remain solvent during the next two years, with the funding shortfall expected to begin in April. To fill this gap, the EU's executive arm has proposed a scheme to access some €210bn of Moscow's state assets seized in the European Union.
Germany's leader Friedrich Merz said the assets plan was critical to increase the pressure on Vladimir Putin and send “a strong signal to the Kremlin.”
A Split Bloc: Resistance and Legal Concerns
However, a significant opposition bloc, spearheaded by Belgium—where the headquarters of Euroclear, which holds most the frozen funds—is voicing concerns about possible juridical challenges. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
From a procedural standpoint, this coalition is not sufficient to block the proposal if a vote gets called under qualified majority voting procedures. Yet politically, it creates the situation very awkward for everyone concerned.
But there is little indication of a middle ground, as the alternative pathway—relying on EU joint borrowing—would require unanimity, and would almost certainly be obstructed by Hungary, which flatly denies any further help for Kyiv.
Leaders’ Statements Ahead of the Talks
European officials have insisted that the summit discussions will continue for however long it takes to achieve an consensus, warning that the future of Ukraine and the EU's standing are at stake.
- Ursula von der Leyen, the European Commission president, declared she won’t leave the summit before an deal is reached.
- In a stark contrast, Slovak leader Robert Fico reportedly joked that he could be kept until the new year, and he would not back it.
- Ukrainian President Volodymyr Zelenskyy is set to join the meeting in a last-ditch attempt to convince the critics.
Firm Resistance from Budapest
The Hungarian Prime Minister Viktor Orbán proved to be blunt, calling the idea of using frozen Russian funds “stupid” and amounting to “entering the conflict.” He voiced support for the Belgian cautious position.
Calls for Unity and a Solution
Other leaders emphasized the critical need for a decision.
- António Costa, European Council president, vowed: “We will work on the issue today, and if needed tomorrow, but we will never leave the summit before reaching a conclusive agreement.”
- Kaja Kallas, the EU’s top diplomat, noted that work to address Belgium’s concerns and distribute the risk equally were continuing. She put the chances of a successful outcome at “fifty-fifty.”
- Micheál Martin, the Irish Taoiseach, said his country was “strongly in favour” of using the frozen assets.
The stage is set for a potentially long and tense bargaining session in Brussels, with the future of significant monetary support for Ukraine hanging in the balance.
