European Union leaders are debating the use of frozen Russian assets – potentially up to €210 billion – to provide a long-term loan for Ukraine as the country faces a potential funding shortfall early next year. While most member states support the plan, Belgium continues to resist, citing potential legal challenges.
Ukraine Funding Debate
Most EU member states, including Ireland, favor utilizing the frozen Russian assets to underwrite a loan for Ukraine. Ukrainian President Volodymyr Zelensky has warned that a failure to reach an agreement would pose a “big problem” for his country.
Polish Prime Minister Donald Tusk framed the choice facing leaders as “money today, or blood tomorrow,” emphasizing the importance of the decision for both Ukraine and European security. He stated that if Russia prevails in Ukraine, the European Union itself would be at risk.
Two options are currently on the table: borrowing against the EU budget or converting the frozen Russian assets. The bulk of these assets are held in a Belgian securities depository.
Taoiseach Micheál Martin said Ireland is “very much in favour” of using the immobilized Russian assets to financially and militarily support Ukraine. He emphasized the need for deterrence against countries violating international law and destroying civilian infrastructure.
Belgium remains concerned about potential legal claims from Russia and seeks legally binding guarantees that other capitals will share the risk, particularly those also holding Russian assets. Prime Minister Bart de Wever stated that current EU guarantees are “insufficient” and that Belgium will not bear the risks and responsibility alone.
Hungary Objects, Peace Talks Continue
Hungarian Prime Minister Viktor Orban stated the idea of using Russian frozen assets to finance Ukraine is “dead” due to a blocking minority against it.
Officials believe an agreement on using Russian assets would signal to the Trump administration and Russia that Europe is committed to supporting Ukraine. Ukrainian and US delegations are scheduled to hold new talks this Friday and Saturday in the United States, aiming to end the Russian invasion. Draft plans to end the war have been proposed, with US President Donald Trump stating a deal is closer than ever.
However, Russia has yet to react to the latest proposal, and Russian leader Vladimir Putin has reiterated Moscow’s intention to pursue its military aims in Ukraine, including the seizure of the Donbas region.
Zelensky acknowledged Russia’s position, stating they want to seize the whole of Donbas.
Other Issues on the Agenda
The European Council will also discuss the Middle East, EU enlargement, security and defence, and combatting antisemitism. The EU’s next multi-annual budget, competitiveness, and migration are also expected to be discussed.
Martin also said he would highlight the humanitarian crisis in Gaza, stressing the need for increased aid and a two-state solution. He also welcomed the European Council’s focus on intensifying efforts to combat antisemitism following the Bondi Beach attack.
Martin also stated Ireland wants a “ringfenced and fully funded” CAP and Common Fisheries Policy and that the EU should be open to trade and investment in innovation.
Referencing recent drone sightings near Dublin during Zelensky’s visit to Ireland, Martin added that Ireland is not immune to security threats and must continue to work with EU partners to combat them.
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