European Union leaders are gathering in Brussels for a decisive summit that could reshape the financial and military landscape of the Ukraine conflict. At the heart of the discussions is whether to loan Ukraine tens of billions of euros from frozen Russian assets held across the EU, a move that could provide crucial support to Kyiv’s military and economic needs.
Currently, most of Russia's €210 billion (£185 billion; $245 billion) in European assets are held by the Belgium-based financial institution Euroclear. While the European Commission has proposed lending Ukraine approximately €90 billion (£79 billion) over the next two years—roughly two-thirds of the €137 billion Ukraine is expected to need for 2026 and 2027—some member states, including Belgium, remain hesitant. Until now, the EU has only allowed Ukraine access to the interest generated by the frozen funds, not the principal itself.
The timing of the summit is critical. Ukraine’s finances are projected to run dry within months without additional funding. “This is a crunch time for Ukraine to keep fighting for the next year,” a Finnish government official told the BBC. The proposed loans would provide Kyiv with leverage to continue its defense operations while participating in ongoing peace negotiations.
The decision is politically delicate. Belgium’s Prime Minister Bart De Wever has expressed reservations, noting that no proposal has yet convinced him to change Belgium’s position. Hungary’s Prime Minister Viktor Orban has also voiced strong opposition, while leaders from Slovakia, Malta, Bulgaria, and the Czech Republic have raised additional concerns. For any plan to move forward, roughly two-thirds of EU member states must approve it, underscoring the complexity of achieving consensus.
Adding to the urgency, the U.S. has signaled growing involvement in efforts to negotiate a peace plan. President Donald Trump stated that a deal to end the war may be closer than ever, with upcoming discussions in Miami between Russian and American officials, alongside Ukrainian representatives. Despite these overtures, the Kremlin has yet to respond to the latest proposals, reiterating its rejection of a European-led multinational force in Ukraine.
European leaders, including Commission chief Ursula von der Leyen and German Chancellor Friedrich Merz, have emphasized that approving the loan would not only assist Ukraine but also increase the costs of war for Russia. Conversely, opponents argue that using Russia’s frozen assets—particularly those controlled by Euroclear—carries legal and financial risks, including the possibility of court challenges demanding repayment.
Alternatives are under consideration, such as borrowing funds from international markets with the EU budget as a guarantee. However, this approach requires unanimous agreement, which seems unlikely given existing opposition from certain member states.
The summit represents a high-stakes moment for both the EU and Ukraine. President Volodymyr Zelensky is in Brussels to advocate for the financial lifeline his country urgently needs, while EU officials work to reconcile legal, financial, and political challenges. The outcome will not only influence Ukraine’s ability to sustain its defense but also send a powerful message to Moscow about the EU’s resolve in the ongoing conflict.
As the EU deliberates, the stakes are clear: billions of euros, the future of Ukraine’s war effort, and the broader stability of European diplomacy hang in the balance. Whatever decision emerges from Brussels will reverberate across the continent and the world.