The European Union has put off until December a decision on whether to tap frozen Russian central bank assets to aid Ukraine, threatening an effort to get Ukraine fresh funding by early 2026.
Talks stalled after Belgium demanded greater assurances it would not be held liable for risks linked to the proposed €140 billion in loans, given the money is mostly held in Belgium.
Ultimately, EU leaders asked the European Commission, the EU’s executive arm, to come up with Ukraine financing options to consider at their next summit. European Council president Antonio Costa told reporters he expects a final decision then.
Any further delay could cause setbacks for Ukraine, which needs a new injection of funds by early 2026.
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Ukraine’s European allies increasingly see tapping Russian assets as the only viable way to continue financing Kyiv in its fight against Moscow’s full-scale invasion, currently well into its fourth year.
The plan to use Russian assets had received the backing of the Irish Government. “I support the European Union initiative, I don’t believe there are implications for neutrality. We are militarily neutral,” Taoiseach Michaél Martin said in advance of a meeting on Thursday.
The bill for Ukraine is growing after US president Donald Trump’s administration halted funding, saying it would only sell weapons paid for by other western allies.
“The European Council commits to address Ukraine’s pressing financial needs for 2026-2027, including for its military and defence efforts,” leaders said in their conclusions.
“The European Council invites the commission to present, as soon as possible, options for financial support based on an assessment of Ukraine’s financing needs.”
Belgium has repeatedly voiced reservations about using the Russian assets as the biggest share of the funds – about €180 billion – sits at Brussels-based clearing house Euroclear. The country is worried about being left on the hook if Russia successfully sues to get the money back. Moscow has said it will retaliate if the assets are seized. The EU plans do not include seizing the assets outright.
Speaking in advance the summit on Thursday, Belgian prime minister Bart De Wever warned he would not sign up to the initiative unless other countries addressed his concerns.
Mr De Wever said he wanted “full mutualisation of the risk” in case Moscow makes claims on the assets. He also wants legally binding guarantees that member states would contribute if the money has to be repaid and for all countries holding frozen assets to take joint action.
During a debate among the bloc’s leaders, Belgium urged the bloc to tap Russian central bank assets immobilised in other member states, according to people familiar with the matter. About €25 billion in assets are frozen in several other capitals.
Strong guarantees are “the absolute condition before you can move forward,” Mr De Wever told reporters after the meeting. “If you take the money and the market sees that there is no liquidity solution for when it goes wrong, you’re immediately in trouble.”
Ukrainian president Volodymyr Zelenskiy, who joined the European leaders in Brussels on Thursday, urged them to deliver the loans at the start of 2026, with the war-torn country running out of resources and funds.
European Commission president Ursula von der Leyen told reporters after the summit that it “was very clear in the discussion” that EU countries broadly supported using the assets.
“In other words, we agreed on the what – that is the reparations loan,” she said. “And we have to work on the how – how we make it possible, what is the best option to move forward.” – Bloomberg
