European Union heads of state are convening in Brussels for year-end discussions facing a key decision on the use of immobilized Russian Federation funds to strengthen Ukraine’s defense in the war against Moscow.
“We have a clear option: it's money now, or blood in the future,” warned the Polish Prime Minister Donald Tusk. “This isn't just about Kyiv only, this concerns the entire continent.”
The 27-member bloc is working urgently to fortify Ukraine's position while former U.S. President Donald Trump advocates for a quick deal to end the conflict as the war continues towards the fourth anniversary.
A Looming Fiscal Crisis and the Proposed Solution
The EU estimates Ukraine requires an extra €135bn ($159bn) to remain solvent over the next two years, with the cash crunch expected to begin in April. To plug this hole, the European Commission has put forward a scheme to tap some €210bn of Moscow's state assets frozen in the bloc.
German leader Friedrich Merz argued the assets plan was essential to increase pressure on Vladimir Putin and send “a strong signal to Russia.”
A Split Union: Opposition and Legal Concerns
However, a significant group of dissenters, spearheaded by Belgium—the home of the clearing house Euroclear, which custodies the majority of the Russian assets—is raising questions about possible legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
From a procedural standpoint, this group may not be enough to veto the proposal should a vote be held under qualified majority rules. But politically, it creates the process very awkward for everyone concerned.
There remains no sign of compromise, as the only other pathway—relying on EU joint borrowing—would need unanimity, and would likely be blocked by Hungary, which categorically rejects any additional help for Ukraine.
Leaders’ Statements Ahead of the Talks
European officials have stated emphatically that the Brussels talks will continue as long as it is necessary to reach an agreement, warning that the future of Ukraine and the EU's standing are on the line.
- Ursula von der Leyen, the head of the EU executive, said she would not depart from the meeting before an deal is concluded.
- In contrast, Slovak Prime Minister Robert Fico reportedly remarked that they can keep him there until the new year, and he would not support it.
- Ukrainian President Volodymyr Zelenskyy is scheduled to join the summit in a last-ditch attempt to convince the critics.
Strong Opposition from Hungary
Hungary’s leader Viktor Orbán proved to be blunt, calling the proposition of using frozen assets “stupid” and amounting to “entering the war.” He expressed support for the Belgian cautious stance.
Calls for Consensus and a Solution
Several other leaders stressed the urgency for a resolution.
- António Costa, European Council president, pledged: “Negotiations will continue on this today, and if needed tomorrow, but we will not depart from the Council before reaching a conclusive agreement.”
- Kaja Kallas, the EU’s foreign policy chief, noted that work to allay Belgian worries and distribute the liability fairly were ongoing. She estimated the odds of a deal at “50/50.”
- Micheál Martin, Ireland’s Taoiseach, said his nation was “strongly in support” of the use of the immobilised assets.
The stage is set for a potentially long and strained bargaining session in Brussels, with the future of significant monetary aid for Ukraine hanging in the balance.
