🔗 Share this article

EU heads of state have gathered in Brussels to hold end-of-year talks with a pivotal choice regarding the use of frozen Russian Federation funds to boost the Ukrainian defense against Moscow.

“We have a simple option: either funds today, or blood tomorrow,” warned the Polish leader Donald Tusk. “I’m not talking about Kyiv only, I’m talking about Europe.”

The 27-member bloc is working urgently to fortify Ukraine's position while ex-American leader Donald Trump pushes for a rapid deal to end the fighting as the war continues towards the four-year anniversary.

A Looming Fiscal Crunch and the Proposed Plan

The EU estimates the nation needs an extra €135bn ($159bn) to remain solvent over the 2026 and 2027, with the cash crunch set to start in April. To fill this hole, the European Commission has proposed a scheme to tap some €210bn of Moscow's state assets seized in the bloc.

German Chancellor Friedrich Merz argued the proposal was essential to increase the pressure on Vladimir Putin and send “a clear signal to Russia.”

A Split Bloc: Opposition and Legal Doubts

However, a significant group of dissenters, led by Belgium—the home of Euroclear, which custodies most the Russian assets—has been raising concerns about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered doubts.

Technically, this coalition may not be enough to block the plan should a vote be held under qualified majority rules. Yet politically, it makes the situation very awkward for all parties concerned.

But there is no sign of a middle ground, as the alternative pathway—focusing on EU joint borrowing—would need unanimous approval, and would likely be obstructed by Hungary, which flatly denies providing any further help for Kyiv.

Leaders’ Statements Before the Negotiations

European officials have stated emphatically that the summit talks will last as long as it takes to achieve an agreement, warning that Ukraine’s survival and Europe’s credibility are on the line.

• Ursula von der Leyen, the head of the EU executive, declared she would not depart from the meeting before an deal is concluded.
• In a stark contrast, Slovakia's Prime Minister Robert Fico reportedly joked that they can keep him there until the New Year, and he would not support it.
• Ukraine's leader Volodymyr Zelenskyy is set to participate in the meeting in a final effort to persuade the critics.

Firm Resistance from Budapest

The Hungarian leader Viktor Orbán proved to be uncompromising, calling the idea of using frozen assets “stupid” and amounting to “marching into the war.” He expressed agreement for the Belgian cautious position.

Calls for Unity and a Solution

Other EU heads of state stressed the urgency for a decision.

• António Costa, European Council president, pledged: “Negotiations will continue on this today, if it’s necessary tomorrow, but we will not depart from the summit without a conclusive agreement.”
• Kaja Kallas, the EU’s foreign policy chief, noted that efforts to allay Belgium’s worries and distribute the liability equally were ongoing. She put the odds of a deal at “50/50.”
• Micheál Martin, the Irish leader, said his nation was “strongly in support” of using the frozen assets.

The stage is set for a possibly long and strained bargaining session in Brussels, with the future of substantial financial support for a nation at war hanging in the balance.