economy

Funding Ukraine... No Agreement on Using Frozen Russian Assets

December 19, 2025 annahar.com
Funding Ukraine... No Agreement on Using Frozen Russian Assets

EU leaders failed to reach an agreement on using frozen Russian assets to fund Ukraine.

SUMMARY

EU leaders failed to agree on using frozen Russian assets to finance a massive loan for Ukraine, with talks continuing to explore alternative funding sources. Ukrainian President Zelensky demands a European decision before year-end and calls on the U.S. to clarify security guarantees.

KEY HIGHLIGHTS

  • EU fails to agree on using frozen Russian assets to fund Ukraine.
  • EU considers lending Ukraine $106 billion as a temporary solution.
  • Ukrainian President Zelensky demands a European decision on frozen assets before year-end.
  • Zelensky calls on the U.S. to provide details on security guarantees.
  • Europeans pledge financial and military support to Ukraine over the next two years.

CORE SUBJECT

Failure of European agreement on funding Ukraine using frozen Russian assets

EU leaders failed on Friday to reach an agreement on using frozen Russian assets to finance a massive loan for Ukraine, according to a European source, who indicated that talks are ongoing to explore alternative funding sources for Kyiv.

The source said during the European summit in Brussels, "After lengthy discussions, it has become clear that the compensation loan requires further work."

European leaders are now seeking to agree on a temporary solution involving directly lending money to Kyiv, supported by the bloc's joint budget.

In this context, Bloomberg reported that the European Union is considering lending Ukraine $106 billion.

Ukrainian President Volodymyr Zelensky said on Thursday that his country needs a European decision on the use of frozen Russian assets before the end of the year, during a press conference in Brussels on the sidelines of the summit.

He added, "Our partners have been informed of the need to make a decision by the end of the year." He had previously stated that Kyiv would face "major problems" if European leaders fail to reach an agreement on using these assets to fund Ukraine.

Zelensky called on the United States to provide more details regarding security guarantees for Ukraine. He said, "There is a question I have not yet received an answer to... it is a question about the overall security guarantees," noting that he wants to know "what the United States will do if Russia commits a new aggression."

Europeans pledged to provide the majority of financial and military support to Kyiv over the next two years, following the decision by U.S. President Donald Trump to halt American support.

Earlier this week, German Chancellor Friedrich Merz said, "If we do not do this, the European Union's ability to act will be severely affected for years, and possibly for a longer period."

KEYWORDS

European Union Ukraine Frozen Russian assets Funding Loan Zelensky Security guarantees

MENTIONED ENTITIES 7

European Union

🏛️ Organization

Political and economic union of European countries

Volodymyr Zelensky

👤 Person_Male

Ukrainian President

United States

📍 Location_Country

Country in North America

Friedrich Merz

👤 Person_Male

German Chancellor

Brussels

📍 Location_City

Capital of the European Union

Bloomberg Agency

🏛️ Organization

International news agency

Donald Trump

👤 Person_Male

Former U.S. President

NOTABLE QUOTES 4

"After lengthy discussions, it has become clear that the compensation loan requires further work."

— European source

Context: Statement during the European summit in Brussels

"Our partners have been informed of the need to make a decision by the end of the year."

— Volodymyr Zelensky 2025-12-18

Context: Press conference in Brussels on the sidelines of the summit

"There is a question I have not yet received an answer to... it is a question about the overall security guarantees."

— Volodymyr Zelensky 2025-12-18

Context: Call to the United States to clarify security guarantees

"If we do not do this, the European Union's ability to act will be severely affected for years, and possibly for a longer period."

— Friedrich Merz 2025-12-15

Context: Statement regarding support for Ukraine