EU heads of state have gathered in Brussels to hold end-of-year talks with a pivotal decision on using frozen Russian assets to boost the Ukrainian defence against Russia.
“There is a simple option: it's money now, or else blood tomorrow,” warned Poland’s Prime Minister Donald Tusk. “This isn't just about Kyiv only, I’m talking about Europe.”
The 27-member union is working urgently to fortify Ukraine's position while former U.S. President Donald Trump pushes for a rapid settlement to halt the conflict as the invasion continues towards the fourth anniversary.
A Looming Fiscal Crunch and the Proposed Plan
European officials calculate the nation needs an additional €135bn ($159bn) to stay afloat over the 2026 and 2027, with the cash crunch set to start in April. To plug this gap, the European Commission has put forward a plan to tap approximately €210bn of Moscow's state reserves frozen within the bloc.
Germany's Chancellor Friedrich Merz argued the proposal was critical to increase the pressure on Vladimir Putin and send “a clear message to Russia.”
A Divided Union: Resistance and Legal Concerns
However, a significant group of dissenters, spearheaded by Belgium—where the headquarters of the clearing house Euroclear, which custodies most the Russian assets—is raising concerns about possible legal issues. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.
Technically, this coalition may not be sufficient to block the plan should a vote be held under qualified majority voting rules. But politically, it makes the process very awkward for all parties concerned.
But there is little indication of a middle ground, as the alternative pathway—relying on EU joint borrowing—would require unanimity, and would almost certainly be blocked by Hungary, which flatly denies any additional assistance for Ukraine.
Officials' Statements Before the Talks
EU officials have insisted that the summit discussions will last as long as it takes to achieve an consensus, warning that Ukraine’s survival and Europe’s credibility are on the line.
- Ursula von der Leyen, the European Commission president, declared she won’t leave the meeting before an deal is reached.
- In contrast, Slovakia's Prime Minister Robert Fico allegedly joked that they can keep him there until the new year, and he still wouldn’t support it.
- Ukrainian President Volodymyr Zelenskyy is scheduled to participate in the summit in a final attempt to persuade the critics.
Strong Opposition from Budapest
Hungary’s Prime Minister Viktor Orbán was blunt, calling the idea of utilizing seized Russian funds “foolish” and amounting to “entering the conflict.” He expressed agreement for the Belgian wary stance.
Appeals for Consensus and a Solution
Other EU heads of state emphasized the urgency for a decision.
- António Costa, European Council president, vowed: “We will work 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, commented that work to allay Belgian worries and share the risk equally were continuing. She estimated the odds of a deal at “fifty-fifty.”
- Micheál Martin, Ireland’s Taoiseach, stated his nation was “strongly in support” of the use of the immobilised funds.
The scene is prepared for a possibly long and tense bargaining session in Brussels, with the future of significant financial aid for a nation at war hanging in the balance.
