EU leaders are deadlocked in fierce talks over a huge €90 billion (£79bn) loan to Ukraine — taken from frozen Russian assets. President Volodymyr Zelensky has warned time is running out. Without the cash, Ukraine’s finances could run dry within months.
Zelensky Pleads for Lifeline at Brussels Summit
The European Commission proposes loaning Kyiv €90b over two years, tapping into Russia’s €210bn frozen EU assets. This would cover two-thirds of Ukraine’s €137bn needs for 2026-27.
“I hope we will be able to get a positive decision. Without this there will be a big problem for Ukraine,” Zelensky told reporters.
Most of the Russian funds are held by Belgium-based Euroclear. Until now, the EU only used interest earned from the frozen cash for Ukraine — not the main pot. The new plan aims to unlock the bulk of the money.
Belgium and EU Split Over “Reparations Loan”
But Belgium and some other members fiercely oppose using the money as “reparations loans,” citing legal risks. Belgian PM Bart De Wever said, “I haven’t yet seen any text that would persuade me to change Belgium’s position.”
Russia has already sued Euroclear in Moscow to reclaim the assets, and warned the EU not to touch the cash. Moscow brands any EU-ish military backing for Ukraine as a “red line.”
European Commission chief Ursula von der Leyen vowed: “We will not leave the summit without a solution.” A Brussels insider said the mood is “cautiously optimistic, not overly optimistic.”
Pressure Mounts as Ukraine Faces Financial Cliff
The summit is urgent. Zelensky needs funds to keep fighting if the war drags on — or to rebuild if peace arrives. Without money, Ukraine’s defence and recovery will collapse.
Meanwhile, tensions simmer globally. Trump claims a peace deal is closer than ever, with US and Russian officials meeting in Miami this weekend. Kremlin envoy Kirill Dmitriev is expected to join Trump envoys Steve Witkoff and Jared Kushner. Ukrainian officials will also meet US diplomats.
The war started with Russia’s 2022 invasion, devastating Ukraine’s economy and infrastructure. Putin has lashed out at Europe, calling it in “total degradation” and deriding “European piglets” hoping to profit from Russia’s downfall — comments coming as the EU debates what to do with frozen Russian billions.
Frozen Funds Fight Highlights Complex EU Divide
The standoff reveals a tangled web of legal and political issues. Some EU states see using Russian frozen assets as rightful reparations. Others fear dangerous legal precedents and potential Russian retaliation.
Stay tuned for the latest on this high-stakes showdown.
