European Union leaders have gathered in Brussels for year-end discussions facing a pivotal choice on using frozen Russian assets to strengthen the Ukrainian defence in the war against Russia.
“There is a clear choice: it's money now, or blood tomorrow,” stated Poland’s Prime Minister Donald Tusk. “This isn't just about Ukraine alone, this concerns the entire continent.”
The 27-nation bloc is scrambling to fortify Ukraine's position while former U.S. President Donald Trump advocates for a rapid deal to halt the conflict as the invasion continues towards the four-year anniversary.
A Looming Fiscal Crisis and the Proposed Solution
The EU estimates Ukraine needs an extra €135bn ($159bn) to remain solvent over the next two years, with the funding shortfall expected to begin in April. To plug this hole, the European Commission has put forward a plan to access approximately €210bn of Russian central bank reserves seized within the European Union.
German leader Friedrich Merz argued the proposal was critical to increase the pressure on Vladimir Putin and send “a strong message to the Kremlin.”
A Split Bloc: Resistance and Legal Concerns
However, a notable opposition bloc, led by Belgium—where the headquarters of Euroclear, which custodies the majority of the Russian assets—has been voicing questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.
From a procedural standpoint, this coalition may not be sufficient to veto the proposal if a vote gets called under qualified majority procedures. Yet in practical political terms, it makes the process very awkward for everyone concerned.
There remains no sign of compromise, as the only other option—relying on EU joint borrowing—would need unanimity, and would likely be obstructed by Hungary, which flatly denies any further help for Ukraine.
Leaders’ Comments Ahead of the Negotiations
EU leaders have stated emphatically that the Brussels discussions will continue for however long it takes to reach an agreement, cautioning that the future of Ukraine and Europe’s credibility are at stake.
- Ursula von der Leyen, the head of the EU executive, declared she won’t leave the meeting before an deal is reached.
- In contrast, Slovak Prime Minister Robert Fico allegedly remarked that they can keep him there until the New Year, and he still wouldn’t back it.
- Ukraine's leader Volodymyr Zelenskyy is scheduled to join the meeting in a final effort to persuade the critics.
Firm Resistance from Budapest
The Hungarian leader Viktor Orbán was uncompromising, calling the proposition of utilizing seized Russian funds “stupid” and equivalent to “marching into the conflict.” He expressed support for the Belgian wary stance.
Calls for Consensus and a Solution
Other EU heads of state emphasized the urgency for a decision.
- António Costa, President of the European Council, pledged: “We will work on this today, if it’s necessary tomorrow, but we will not depart from the Council without a conclusive agreement.”
- Kaja Kallas, the EU’s top diplomat, commented that efforts to address Belgian concerns and share the liability fairly were continuing. She estimated the chances of a deal at “50/50.”
- Micheál Martin, Ireland’s Taoiseach, stated his nation was “very much in favour” of using the frozen funds.
The stage is set for a possibly long and strained negotiation in the EU capital, with the fate of significant financial support for a nation at war resting in the balance.
