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EU leaders have failed to back a €140bn loan to Kyiv using frozen Russian state assets following opposition from Belgium, dashing Ukraine’s hopes of accessing funds at the beginning of next year to stave off Russia’s aggression.
EU leaders meeting on Thursday in Brussels discussed using cash arising from around €190bn in frozen sovereign Russian assets to fund a “reparations loan” for Kyiv, as efforts to end Russia’s war against Ukraine falter and the US pulls back support.
Belgium demanded cast-iron guarantees it would not suffer financially, fearing legal and financial repercussions should Russia retaliate against the plan. The assets are held at the Brussels-based Euroclear central securities depository.
Leaders of 26 EU countries — Hungary abstained — asked the European Commission to “present, as soon as possible, options for financial support based on an assessment of Ukraine’s financing needs” but did not formally back a loan based on Russia’s immobilised assets.
They agreed to return to the discussion at their next meeting in December.
“We took the most important political decision to ensure full financial support for Ukraine to address their financial needs in 2026 and 2027,” said European Council president António Costa.
However, several leaders had raised “technical issues” that had to be addressed, he added.
European Commission president Ursula von der Leyen said leaders had agreed “on the ‘what’ — that is the reparations loan — and we have to work on the ‘how’, how we make it possible, what is the best option to move forward”.
“Potentially, there are always other options than using the immobilised assets,” she said, but added they were the “focus”.
Belgian Prime Minister Bart De Wever said after the meeting that he needed more clarity on the legal basis and potential risks for the euro as well as guarantees from other countries that the money could be paid back if required.
“A legal basis is not a luxury,” he stressed.
German Chancellor Friedrich Merz, who has strongly supported the €140bn loan idea, acknowledged that Belgium had raised “some very serious questions we still need to resolve”, including the liability risk for Euroclear.
“The commission has been asked today to work out all possible options and present them to us by the next European Council, which will take place on December 18,” Merz said.
France’s President Emmanuel Macron said the loan “remains the central set of options” for supporting Ukraine.
The failure to back the scheme could delay the commission’s goal of having financial support for Ukraine approved by the end of the year, and could complicate funding plans for Kyiv’s weapons purchases.
The Trump administration has pressured Europe to pay for arming Ukraine, including for US-made weapons.
“We want to ensure that Ukraine is financed through next year, one way or another. And there will be decisions on this at the end of the year,” Merz said.
European leaders from so-called “coalition of the willing” countries are meeting for a video call on Friday, seeking to send a strong signal of support to Ukraine amid the faltering peace talks.
Ukrainian President Volodymyr Zelenskyy, who attended the EU summit, pointed out that Kyiv would need the money next year when it will face significant funding requirements in its war against Russia.
“We need the money in 2026 and better to have it in the very beginning of the year, but I don’t know if it’s possible,” Zelenskyy said.
