EU promises to fund Ukraine for the next two years using Russian assets
Photo: EU plans to finance Ukraine using frozen Russian assets
The European Union will continue financing Ukraine over the next two years, stated the President of the European Council, Antonio Costa, Reuters reports.
According to him, Brussels plans to use profits from frozen Russian assets for this purpose. However, Belgium has threatened to block the mechanism that would allow these funds to be used for Ukraine's support.
Earlier, the European Commission announced that profits from Russian assets could begin to be directed toward supporting Ukraine as early as 2025.
Belgian Prime Minister Bart De Wever stated that his country would agree to the use of frozen Russian assets for Ukraine's support only if a number of conditions are met.
De Wever explained that Belgium, through the Euroclear securities depository, holds a significant portion of these assets and does not want to assume all the financial risks.
"If demands are met, we can go forward. If not, I will do everything in my power at the European level, also at the national level, politically and legally to stop this decision," the Prime Minister said.
Belgium proposes that all EU members share the costs in case of potential lawsuits from Russia and contribute if the funds need to be returned. Additionally, De Wever emphasized that frozen Russian assets in other countries should also be included in the scheme.
However, Costa made it clear that he expects a political agreement, and technical details will be settled later.
"We will take the political decision to ensure the financial needs of Ukraine for 2026 and 2027, including for the acquisition of military equipment," Costa said.
It is expected that EU leaders will instruct the European Commission to draft an official legal proposal regarding the frozen assets plan.
He also noted that these funds could be immediately used to strengthen Ukraine's air defense, air fleet, and frontline positions, adding, "That means saving lives."
The EU is close to deciding on directing frozen Russian assets to finance a large-scale loan for Ukraine.
International partners of Ukraine are also discussing ways to cover the national budget deficit for the next year. One option involves creating a so-called reparations loan – a mechanism that would allow frozen Russian assets to be used for Ukraine's benefit.
This would amount to up to €130 billion, which would significantly help strengthen Ukraine's defense, enhance its ability to counter Russia, and support the country’s overall economy.
