🔗 Share this article

European Union heads of state have gathered in Brussels for year-end discussions facing a key choice on using immobilized Russian Federation assets to strengthen Ukraine’s defence in the war against Moscow.

“We have a simple option: either funds now, or bloodshed in the future,” warned the Polish leader Donald Tusk. “This isn't just about Kyiv only, this concerns the entire continent.”

The 27-nation bloc is working urgently to strengthen Kyiv’s hand while former U.S. President Donald Trump pushes for a quick settlement to halt the fighting as the invasion drags towards the fourth mark.

The Financial Crunch and the Controversial Solution

European officials calculate the nation requires an extra €135bn ($159bn) to remain solvent during the 2026 and 2027, with the cash crunch expected to begin in the spring. To plug this hole, the European Commission has put forward a scheme to tap some €210bn of Russian central bank assets frozen within the bloc.

German leader Friedrich Merz said the assets plan was critical to increase pressure on Vladimir Putin and send “a strong message to Russia.”

A Split Bloc: Resistance and Juridical Doubts

However, a significant opposition bloc, led by Belgium—the home of the clearing house Euroclear, which holds most the Russian assets—is raising questions about possible legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.

From a procedural standpoint, this coalition is not enough to block the plan if a vote gets called under qualified majority voting procedures. But in practical political terms, it creates the situation very awkward for everyone concerned.

There remains little indication of a middle ground, as the alternative option—relying on European Union debt—would require unanimity, and would likely be obstructed by Hungary, which flatly denies any additional assistance for Ukraine.

Leaders’ Comments Before the Negotiations

EU officials have insisted that the Brussels discussions will last for however long it takes to reach an consensus, cautioning that the future of Ukraine and the EU's standing are on the line.

• Ursula von der Leyen, the European Commission president, said she won’t leave the summit before an agreement is concluded.
• In a stark contrast, Slovakia's leader Robert Fico reportedly remarked that they can keep him there until the new year, and he would not back it.
• Ukrainian leader Volodymyr Zelenskyy is scheduled to participate in the meeting in a final effort to persuade the skeptical nations.

Strong Opposition from Budapest

Hungary’s Prime Minister Viktor Orbán was uncompromising, labeling the proposition of utilizing frozen assets “foolish” and equivalent to “entering the war.” He expressed support for Belgium’s cautious position.

Appeals for Consensus and a Resolution

Several other EU heads of state emphasized the urgency for a resolution.

• António Costa, European Council president, pledged: “Negotiations will continue on the issue today, if it’s necessary 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 allay Belgium’s concerns and share the liability fairly were ongoing. She put the odds of a successful outcome at “50/50.”
• Micheál Martin, the Irish Taoiseach, said his country was “strongly in favour” of the use of the frozen assets.

The scene is prepared for a possibly protracted and strained negotiation in the EU capital, with the future of substantial financial aid for Ukraine resting in the balance.