European Union heads of state are convening in Brussels to hold end-of-year talks facing a pivotal decision regarding the use of immobilized Russian assets to strengthen the Ukrainian defense in the war against Russia.
“We have a clear option: it's funds today, or else bloodshed tomorrow,” warned the Polish leader Donald Tusk. “I’m not talking about Kyiv only, this concerns the entire continent.”
The 27-member bloc is scrambling to strengthen Kyiv’s hand while ex-American leader Donald Trump advocates for a rapid settlement to halt the fighting as the war drags towards the four-year anniversary.
The Financial Crisis and the Controversial Plan
The EU estimates the nation requires an additional €135bn ($159bn) to stay afloat during the next two years, with the funding shortfall set to start in the spring. To plug this gap, the EU's executive arm has proposed a plan to access some €210bn of Russian central bank assets frozen within the bloc.
Germany's Chancellor Friedrich Merz said the assets plan was critical to increase the pressure on Vladimir Putin and send “a strong message to the Kremlin.”
A Divided Bloc: Resistance and Legal Concerns
However, a notable opposition bloc, led by Belgium—the home of the clearing house Euroclear, which holds most the Russian assets—is raising questions about potential juridical challenges. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed reservations.
From a procedural standpoint, this group is not enough to veto the proposal should a vote be held under qualified majority voting procedures. Yet in practical political terms, it creates the situation extremely difficult for everyone concerned.
But there is little indication of a middle ground, as the alternative option—relying on EU joint borrowing—would need unanimous approval, and would likely be blocked by Hungary, which flatly denies providing any additional help for Kyiv.
Officials' Statements Ahead of the Negotiations
European officials have insisted that the summit talks will last as long as it takes 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 summit until an agreement is reached.
- In a stark contrast, Slovakia's leader Robert Fico allegedly 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 meeting in a last-ditch attempt to persuade the skeptical nations.
Firm Resistance from Budapest
The Hungarian Prime Minister Viktor Orbán proved to be blunt, calling the idea of using seized Russian funds “foolish” and amounting to “entering the conflict.” He expressed agreement for the Belgian cautious stance.
Calls for Unity and a Resolution
Other EU heads of state stressed the urgency for a resolution.
- António Costa, President of the European Council, vowed: “We will work on the issue today, and if needed tomorrow, but we will never leave the summit without a final decision.”
- Kaja Kallas, the EU’s top diplomat, commented that efforts to address Belgium’s worries and distribute the risk equally were ongoing. She estimated the chances of a deal at “fifty-fifty.”
- Micheál Martin, Ireland’s Taoiseach, said his nation was “strongly in favour” of using the immobilised funds.
The stage is set for a potentially protracted and tense negotiation in the EU capital, with the future of significant financial aid for a nation at war resting in the balance.
