EU leaders gathered in a critical summit on Thursday in Brussels are being urged to deliver urgently on promises to fund Ukraine, as Kyiv faces pressure to make territorial concessions while Russian forces continue to advance on the battlefield.
Von der Leyen: Supporting Ukraine Is Non-Negotiable
Speaking to the European Parliament ahead of the summit, European Commission President Ursula von der Leyen stated:
“There is no act more important for European defense than supporting Ukraine’s defense. The coming days will be decisive.”
Von der Leyen emphasized that Europe must take responsibility for its security in a dangerous and transactional world, calling it a necessity rather than an option.
Funding Options Under Discussion
Earlier this month, von der Leyen proposed two options for financing Ukraine’s urgent defense and civilian needs for 2026 and 2027:
- Joint borrowing by the EU
- A so-called “reparations loan” backed by frozen Russian assets in the bloc
Belgium, which holds the majority of €210 billion in frozen Russian assets, expressed concern about potential liability if the scheme fails. Meanwhile, Italy stressed the need for a strong legal basis to avoid giving Moscow what it described as a potential propaganda victory.
Germany’s Chancellor Friedrich Merz is advocating for up to €90 billion of Russian assets to be made usable for Ukraine’s defense, estimating the chances of agreement at 50-50. He emphasized that such funds could finance the Ukrainian military for at least two years and send a clear message to President Vladimir Putin.
Reparations Loan vs EU Budget Loan
Under the current plan, Ukraine would receive a €90 billion loan, financed via Euroclear. Repayment would occur only if Russia pays reparations. Officials argue that this avoids complications with Russia’s claims on frozen assets, while using the EU budget would require unanimity, which is unlikely given Hungary’s opposition to Ukraine aid.
According to high-level EU sources, the majority of member states favor the reparations loan, viewing it as the most feasible option to secure urgent funds for Ukraine without triggering vetoes.
Context of Asset Freezes
Last week, the EU invoked emergency powers to indefinitely freeze €210 billion in Russian assets, circumventing the risk that countries like Hungary might block renewals of sanctions. Belgium suggested using these powers to generate an EU-backed loan for Ukraine, though some member states criticized this as a legal overreach.
Von der Leyen and EU leaders now face a pivotal moment in balancing urgent financial support for Ukraine, legal considerations, and the geopolitical message to Russia.
