Deep divisions emerge at EU summit over using frozen Russian assets to support Ukraine
The proposal focuses on whether the EU can tap approximately $246bn in frozen Russian central bank assets
European Union leaders are gathering in Brussels to decide on a highly divisive plan to use nearly $250bn in frozen Russian assets to finance Ukraine’s war effort, amid sharp disagreements among member states.
At the heart of the debate is whether the EU can leverage around €210bn ($246bn) in Russian central bank funds frozen within the bloc to underwrite loans to Kyiv over the next two years. The loans would later be repaid through anticipated war reparations from Moscow — a claim the Kremlin firmly rejects.
The proposal comes as US financial assistance to Ukraine wanes under President Donald Trump’s administration, while EU governments face growing pressure on national budgets.
EU officials warn that without fresh funding, Ukraine could face a cash shortfall by April next year, raising fears of battlefield setbacks, expanding Russian influence, and potential spillover of the conflict beyond Ukraine’s borders.
Ukrainian President Volodymyr Zelenskyy has cautioned that failure to fund Kyiv would embolden Russia and heighten the risk of new conflicts, including within Europe itself.
The talks follow the European Commission’s presentation of a contingency plan in which the EU would raise funds independently to lend to Ukraine. That option has been shelved for now due to opposition from Hungary’s Prime Minister Viktor Orban, whose veto would be decisive as the measure requires unanimous approval from all 27 member states.
Belgium’s reservations
Analysts say using frozen Russian assets has become virtually the only viable funding option, though German Chancellor Friedrich Merz described the chances of agreement as “fifty-fifty.”
The move would be unprecedented. Analysts note that even during World War II, German state assets were not confiscated in this manner.
Belgian Prime Minister Bart De Wever told parliament that he remains deeply concerned about the legal and financial risks, warning that Belgium could be forced to compensate Russia if courts later rule the seizure unlawful.
Belgium is seeking binding guarantees from other EU states to cover any potential liabilities and wants assurances that Russian assets held outside its jurisdiction would also be included.
Approximately $185bn of frozen Russian assets in Europe are held by Euroclear, the Brussels-based financial services firm.
While countries such as Germany and the Netherlands have indicated support for the plan, others — including Italy and Bulgaria — remain cautious.
Although the proposal requires only a qualified majority rather than unanimity, EU officials are eager to secure Belgium’s backing. A Belgian rejection would carry significant political weight, given Brussels’ role as the EU’s institutional hub.
Risk of retaliation
Russia’s central bank warned it would pursue legal action against European banks if frozen assets are used to fund Ukraine.
Chris Weafer, chief executive of consultancy Macro-Advisory told that Moscow would likely interpret such a move as the opening of a financial confrontation with the EU.
“Russia is drawing a clear line on this issue,” Weafer said, adding that retaliation would depend on Europe’s actions.
He noted that Russia has already initiated legal proceedings against Euroclear and financial institutions in France, Austria and the UK.
Weafer added that the EU is unlikely to move forward without Belgium’s support, as many member states are increasingly reluctant or financially unable to continue direct funding for Ukraine.
“The EU is urgently searching for an alternative source of financing,” he said.
Fighting intensifies
On the ground in Ukraine, Russian forces launched attacks across several regions, injuring dozens of civilians, including in Kryvyi Rih and the Zaporizhia, Cherkasy and Odesa regions.
In Russia, three people — including two cargo ship crew members — were killed in Ukrainian drone strikes on the port city of Rostov-on-Don and the nearby town of Bataysk, regional authorities said.
Russian shelling hit Ukraine’s Donetsk region 18 times, killing three civilians, according to Governor Vadym Filashkin.
Ukraine’s acting Energy Minister Artem Nekrasov said overnight attacks disrupted electricity supplies in five regions, affecting around 180,000 people.
Meanwhile, Ukrainian shelling in Russian-occupied Kherson killed a 72-year-old woman and wounded six others, regional officials said.
Heavy ground and aerial combat continues across eastern Ukraine, particularly near Kupiansk, Lyman and Sloviansk.
Ukraine reported shooting down 330 drones during what it described as major Russian air assaults, while Russia said its air defenses intercepted 47 Ukrainian drones overnight.
Watch This Important Video
