EU leaders have gathered in Brussels to hold year-end talks with a key decision on the use of immobilized Russian funds to boost the Ukrainian defence against Moscow.
“We have a clear option: either funds now, or bloodshed in the future,” stated the Polish leader Donald Tusk. “This isn't just about Ukraine alone, I’m talking about Europe.”
The 27-nation bloc is working urgently to strengthen Kyiv’s hand while ex-American leader Donald Trump advocates for a quick settlement to end the fighting as the war drags towards the four-year anniversary.
The Financial Crunch and the Proposed Plan
European officials calculate Ukraine needs an extra €135bn ($159bn) to stay afloat over the 2026 and 2027, with the cash crunch expected to begin in April. To plug this gap, the European Commission has put forward a plan to tap approximately €210bn of Russian central bank reserves frozen in the bloc.
Germany's Chancellor Friedrich Merz argued the assets plan was critical to ramp up pressure on Vladimir Putin and send “a clear signal to Russia.”
A Divided Bloc: Opposition and Legal Concerns
However, a notable opposition bloc, led by Belgium—where the headquarters of the clearing house Euroclear, which holds most the frozen funds—is raising questions about possible legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
From a procedural standpoint, this group is not enough to block the plan should a vote be held under qualified majority voting rules. Yet politically, it creates the situation extremely difficult for everyone involved.
There remains little indication of a middle ground, as the alternative pathway—focusing on EU joint borrowing—would require unanimity, and would almost certainly be obstructed by Hungary, which flatly denies providing any further help for Kyiv.
Leaders’ Comments Before the Talks
EU officials have insisted that the summit talks will continue as long as it is necessary to reach an consensus, cautioning that the future of Ukraine and the EU's standing are at stake.
- Ursula von der Leyen, the head of the EU executive, declared she would not depart from the summit before an agreement is concluded.
- In a stark contrast, Slovakia's leader Robert Fico allegedly joked that he could be kept until the new year, and he would not back it.
- Ukrainian leader Volodymyr Zelenskyy is scheduled to participate in the meeting in a final attempt to persuade the skeptical nations.
Strong Opposition from Budapest
The Hungarian leader Viktor Orbán proved to be uncompromising, labeling the idea of utilizing seized assets “foolish” and equivalent to “entering the war.” He expressed support for the Belgian wary stance.
Appeals for Consensus and a Solution
Other EU heads of state stressed the critical need for a resolution.
- António Costa, European Council president, vowed: “We will work on the issue today, if it’s necessary tomorrow, but we will not depart from the summit before reaching a final decision.”
- Kaja Kallas, the EU’s foreign policy chief, noted that work to allay Belgian concerns and share the risk equally were ongoing. She put the odds of a deal at “fifty-fifty.”
- Micheál Martin, the Irish leader, said his country was “strongly in favour” of the use of the frozen funds.
The stage is set for a potentially protracted and tense bargaining session in the EU capital, with the future of significant monetary aid for Ukraine resting in the balance.
