European Union leaders are convening in Brussels to hold end-of-year discussions with a pivotal choice on the use of frozen Russian Federation funds to boost Ukraine’s defence in the war against Russia.
“We have a clear option: it's funds now, or blood in the future,” warned Poland’s leader Donald Tusk. “This isn't just about Kyiv alone, this concerns Europe.”
The 27-nation bloc is scrambling to strengthen Kyiv’s hand while ex-American leader Donald Trump advocates for a quick settlement to end the conflict as the invasion continues towards the four-year anniversary.
A Looming Fiscal Crunch and the Proposed Solution
European officials calculate the nation requires an additional €135bn ($159bn) to stay afloat during the 2026 and 2027, with the funding shortfall set to start in the spring. To plug this hole, the EU's executive arm has proposed a plan to tap approximately €210bn of Moscow's state assets frozen in the European Union.
German Chancellor Friedrich Merz said the assets plan was essential to increase the pressure on Vladimir Putin and send “a strong signal to the Kremlin.”
A Divided Bloc: Resistance and Juridical Doubts
However, a notable group of dissenters, led by Belgium—the home of Euroclear, which holds the majority of the frozen funds—has been voicing concerns about possible legal issues. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
Technically, this group may not be sufficient to block the proposal should a vote be held under qualified majority rules. Yet in practical political terms, it creates the situation extremely difficult for everyone involved.
There remains little indication of a middle ground, as the alternative option—relying on EU joint borrowing—would require unanimity, and would almost certainly be blocked by Hungary, which flatly denies providing any further help for Ukraine.
Leaders’ Statements Ahead of the Talks
EU officials have insisted that the Brussels talks will continue for however long it is necessary to reach an agreement, cautioning that the future of Ukraine and the EU's standing are on the line.
- Ursula von der Leyen, the head of the EU executive, declared she would not depart from the meeting until an agreement is reached.
- 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 back it.
- Ukrainian President Volodymyr Zelenskyy is scheduled to join the summit in a final attempt to persuade the skeptical nations.
Firm Resistance from Hungary
The Hungarian leader Viktor Orbán was blunt, labeling the proposition of utilizing frozen assets “stupid” and equivalent to “marching into the conflict.” He voiced support for the Belgian cautious stance.
Appeals for Consensus and a Solution
Several other leaders emphasized the urgency for a resolution.
- António Costa, President of the European Council, vowed: “We will work on the issue today, and if needed tomorrow, but we will not depart from the summit before reaching a final decision.”
- Kaja Kallas, the EU’s top diplomat, noted that efforts to address Belgium’s concerns and distribute the liability fairly were continuing. She estimated the chances of a successful outcome at “fifty-fifty.”
- Micheál Martin, the Irish Taoiseach, stated his nation was “very much in favour” of using the frozen funds.
The stage is set for a potentially protracted and tense bargaining session in the EU capital, with the fate of substantial financial aid for a nation at war hanging in the balance.
