European Union leaders are convening in Brussels to hold end-of-year talks facing a key choice regarding the use of immobilized Russian Federation assets to boost Ukraine’s defence against Russia.
“There is a clear choice: either funds now, or bloodshed tomorrow,” stated Poland’s Prime Minister Donald Tusk. “I’m not talking about Kyiv only, this concerns Europe.”
The 27-member bloc is working urgently to fortify Ukraine's position while ex-American leader Donald Trump advocates for a quick settlement to end the fighting as the invasion continues towards the four-year mark.
A Looming Fiscal Crisis and the Proposed Solution
European officials calculate the nation requires 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 EU's executive arm has put forward a plan to tap approximately €210bn of Moscow's state reserves frozen within the bloc.
German leader Friedrich Merz said the proposal was critical to increase pressure on Vladimir Putin and send “a strong signal to the Kremlin.”
A Divided Bloc: Resistance and Legal Doubts
However, a notable opposition bloc, led by Belgium—the home of Euroclear, which holds the majority of the frozen funds—has been voicing questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
Technically, this coalition is not sufficient to block the proposal should a vote be held under qualified majority voting procedures. But in practical political terms, it makes the process very awkward for everyone involved.
There remains no sign of compromise, as the only other option—relying on EU joint borrowing—would need unanimous approval, and would likely be obstructed by Hungary, which flatly denies providing any additional assistance for Ukraine.
Officials' Comments Before the Talks
EU officials have insisted that the Brussels discussions will continue for however long it is necessary to reach an agreement, warning that the future of Ukraine and Europe’s credibility are on the line.
- Ursula von der Leyen, the European Commission president, said she would not depart from the meeting before an agreement is concluded.
- In contrast, Slovakia's Prime Minister Robert Fico reportedly 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 participate in the summit in a last-ditch effort to persuade the critics.
Firm Resistance from Budapest
Hungary’s leader Viktor Orbán was blunt, labeling the idea of utilizing seized assets “foolish” and equivalent to “entering the conflict.” He voiced support for the Belgian cautious position.
Calls for Consensus and a Solution
Other leaders stressed the critical need for a resolution.
- António Costa, European Council president, vowed: “Negotiations will continue on the issue today, and if needed tomorrow, but we will never leave the Council without a conclusive agreement.”
- Kaja Kallas, the EU’s foreign policy chief, commented that work to address Belgian concerns and share the liability equally were continuing. She estimated the chances of a successful outcome at “50/50.”
- Micheál Martin, the Irish Taoiseach, said his country was “very much in favour” of the use of the frozen assets.
The stage is set for a possibly long and tense bargaining session in Brussels, with the future of substantial monetary support for Ukraine hanging in the balance.
