EU delays Final Decision on ukraine Loan utilizing Frozen Russian Assets Until December Summit
Brussels, Belgium – European Union leaders concluded a summit in Brussels on Thursday with a commitment to financially support Ukraine in 2026 and 2027, but deferred a final decision on a proposed €140 billion loan to Ukraine funded by frozen Russian assets until their December summit. The delay follows significant discussion and objections raised by Belgium regarding potential risks associated with the plan.
European Commission President ursula von der Leyen affirmed that the Commission will continue to explore the feasibility of the replacement loan. “We had a good discussion about the replacement loan. It clarified conditions that need to be examined,” she stated at a post-summit press conference. “we agree on what needs to be done. It is indeed the replacement loan. But not how.That is, how it should be structured.”
The proposed loan is intended to provide Ukraine with financial stability for the next two years of the war. However, the plan has faced resistance, notably from Belgian Prime Minister Bart De Wever, whose country is central to the issue as the €140 billion in Russian assets is held by euroclear, a Belgian securities settlement firm.
De Wever voiced concerns about potential repercussions if the plan were to fail, stating, “There is a great risk.We will be exposed to enormous compensation claims.” He further warned that Russia could retaliate by declaring Belgian and other European companies operating within Russia bankrupt and seizing their assets. “The leaders of the EU countries need to understand that if we take Putin’s money, he will take our money,” De Wever cautioned. “European companies will be taken over in Russia. Western money that is frozen in Russia will be taken. And perhaps countries that are friendly towards Russia will do the same.”
Von der Leyen acknowledged the need to address these concerns, emphasizing that the initiative will adhere to European legislation.
EU President António Costa confirmed that no vetoes were cast during the summit. “Different leaders raised technical questions that now need to be examined. And then we will make the final decision at the summit in December,” he said.
Ukrainian President Volodymyr Zelenskyy stressed the urgency of the funding, stating, “Ukraine needs the money in 2026. And it is best if we receive the money at the beginning of 2026.” A senior EU official previously indicated that Ukraine could face an “economic collapse” by the end of the first quarter of 2026 if funding is not secured, potentially creating a ”security risk” for all of Europe.
The EU is now focused on resolving the outstanding technical and legal questions before revisiting the loan proposal at the December summit.
