EU leaders have gathered in Brussels for year-end discussions with a pivotal decision regarding the use of immobilized Russian Federation funds to strengthen Ukraine’s defence in the war against Moscow.
“There is a simple option: either money today, or blood tomorrow,” warned Poland’s Prime Minister Donald Tusk. “This isn't just about Kyiv alone, this concerns the entire continent.”
The 27-member union is scrambling to fortify Ukraine's position while former U.S. President Donald Trump pushes for a quick settlement to end the fighting as the war continues towards the four-year anniversary.
The Financial Crisis and the Controversial Solution
The EU estimates Ukraine needs an additional €135bn ($159bn) to remain solvent during the next two years, with the cash crunch set to start in April. To plug this gap, the EU's executive arm has put forward a scheme to tap approximately €210bn of Russian central bank reserves seized in the European Union.
German Chancellor Friedrich Merz argued the proposal was essential to increase pressure on Vladimir Putin and send “a strong message to Russia.”
A Divided Bloc: Resistance and Juridical Doubts
However, a notable group of dissenters, spearheaded by Belgium—where the headquarters of Euroclear, which holds most the Russian assets—has been raising questions about possible legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
Technically, this group may not be enough to veto the plan if a vote gets called under qualified majority procedures. Yet politically, it makes the situation very awkward for all parties concerned.
But there is little indication of compromise, as the only other pathway—relying on European Union joint borrowing—would need unanimous approval, and would likely be blocked by Hungary, which categorically rejects providing any additional assistance for Ukraine.
Officials' Statements Ahead of the Talks
EU officials have stated emphatically that the summit discussions will continue as long as it takes to reach an agreement, warning that the future of Ukraine and Europe’s credibility are on the line.
- Ursula von der Leyen, the European Commission president, declared she would not depart from the meeting before an deal is reached.
- In a stark contrast, Slovakia's leader 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 set to participate in the meeting in a final attempt to convince the critics.
Strong Opposition from Hungary
The Hungarian leader Viktor Orbán proved to be blunt, calling the proposition of using frozen Russian funds “foolish” and amounting to “entering the conflict.” He voiced support for the Belgian cautious stance.
Calls for Unity and a Resolution
Several other EU heads of state stressed the urgency for a decision.
- António Costa, President of the European Council, pledged: “Negotiations will continue on the issue today, and if needed tomorrow, but we will not depart from the Council before reaching a conclusive agreement.”
- Kaja Kallas, the EU’s top diplomat, noted that work to address Belgian concerns and share the risk equally were continuing. She put the odds of a successful outcome at “50/50.”
- Micheál Martin, the Irish Taoiseach, stated his nation was “strongly in support” of the use of the frozen funds.
The scene is prepared for a possibly long and tense negotiation in the EU capital, with the future of significant monetary support for Ukraine resting in the balance.
