Decisive European Summit Discusses Financing Ukraine with Frozen Russian Assets

The European Union is holding a summit in Brussels today, Thursday, with the Ukrainian issue topping its agenda, where leaders will discuss how to finance Ukraine's economic and military needs in the coming years.

The most controversial financing model involves making frozen Russian state assets, held under EU sanctions, available to Ukraine in the form of a "loan" that Kyiv would only have to repay if Russia provides compensation after the war.

The European Commission has proposed providing Ukraine with 90 billion euros (105.4 billion dollars) in installments to cover financial and military needs in 2026 and 2027, in addition to another 45 billion euros to repay other loans granted to Kyiv in previous years.

Belgium, which holds about 185 billion euros of the total 210 billion euros of frozen Russian assets in the EU, opposes this plan, citing legal and financial risks.

The Belgian government is particularly concerned that Moscow might retaliate against European individuals and companies, for example by seizing their properties in Russia, and is demanding protective guarantees.

Belgian Prime Minister Bart De Wever also demands legally binding and unconditional guarantees from other EU countries covering the full loan amount, as well as protection from any potential compensation claims for damages.

Approving the loan requires a so-called "qualified majority," meaning the approval of at least 15 out of the 27 EU member states representing 65% of the bloc's population, but it is unlikely that other EU countries would want to override Belgium by voting against it.

Negotiations are expected to extend, with EU leaders likely to remain in the Belgian capital until Friday. Ukrainian President Volodymyr Zelensky is also expected to join the summit as a guest.

Earlier, Politico reported that senior European officials said the administration of U.S. President Donald Trump was pressuring EU countries to reject the European plan to grant Ukraine a loan from the frozen Russian funds.

One official told the newspaper that "the chances of reaching an agreement on the frozen Russian assets diminished yesterday instead of improving."

The EU wants to continue financing Ukraine and enable it to keep fighting because it sees the Russian war as a threat to its security. To achieve this, EU countries aim to utilize some of the sovereign Russian assets frozen after Moscow launched its war on Ukraine in 2022.

Russian special envoy Kirill Dmitriev said, "Europeans will face severe consequences if they decide to use our frozen assets."

The Russian central bank anticipated the EU decision and confirmed that the proposals published by the EU to use its assets are illegal, warning that it reserves the right to use all available mechanisms to protect its interests.

Since February 24, 2022, Russia has been conducting a military attack on its neighbor Ukraine, demanding an end to the conflict only if Kyiv abandons joining Western military entities, which Kyiv considers interference in its affairs.