The European Union is close to finalizing a plan to finance Ukraine’s defence in 2026 and 2027, using frozen Russian assets held across Europe, EU summit chairman Antonio Costa said on Tuesday.
EU leaders had pledged on October 23 to support Kyiv for the next two years as the country continues to fend off Russia’s invasion, amid dwindling U.S. financial contributions. The plan is expected to be finalised at a European Council summit in Brussels on December 18, though Costa indicated discussions could extend beyond that date if necessary.
“Now we are working on fine-tuning the legal and technical solution that could obtain the agreement of at least a qualified majority of member states. I think we are very close to obtaining a solution,” Costa told reporters in Dublin. “For me, it's sure that on the 18th of December we will take a decision. But if necessary, we will continue on the 19th or 20th until we reach a positive conclusion.”
Financing Plan
The preferred method for financing Ukraine’s defence involves putting to work approximately 210 billion euros of Russian sovereign assets frozen in Europe since Moscow’s 2022 invasion. The European Commission aims to issue a Reparations Loan of up to 165 billion euros to Ukraine, by asking EU institutions holding Russian cash to exchange it for triple-A EU bonds issued by the Commission. The funds would then be disbursed to Kyiv in installments over the next two years.
Belgium, where most of the frozen assets are held, has requested guarantees from other EU countries to share any potential financial consequences if Russia successfully sues Belgium over the scheme. Talks to provide these guarantees are ongoing and expected to conclude at the summit.
International Cooperation
To reduce the risk of Russian retaliation, Belgium also seeks participation from G7 countries holding Russian assets, including the United Kingdom, Canada, and Japan.
British Prime Minister Keir Starmer confirmed on November 25 that London is ready to collaborate with the EU to provide financial support to Ukraine using frozen Russian assets. The Guardian reported that the UK could contribute around 8 billion pounds of such assets. Canada has indicated it is exploring a similar option, while Japan has not yet announced specific measures but has not ruled out using frozen assets to support Ukraine.
Strategic Importance
The EU views maintaining Ukraine’s military capacity as vital to European security, reasoning that as long as Russian forces remain engaged in Ukraine, the risk of an attack on EU countries is reduced. EU officials have stressed that this financial support would give Europe time to strengthen its own defence capabilities.
The December summit will likely determine the final framework, which could set a precedent for using immobilized foreign assets to support countries under attack while sharing legal and financial risks among allies.
Indian police detained more than 2,000 protesters in Delhi on Saturday as authorities blocked a planned demonstration calling for the resignation o...
A powerful explosion has been reported at King Khalid International Airport in Riyadh, raising fresh concerns over aviation security in Saudi Arabi...
At least 12 people, including three children, have been killed in a Russian attack on the Ukrainian city of Zaporizhzhia, a day after U.S. Presiden...
Leaders of countries from the Commonwealth of Independent States (CIS) have agreed to hold coordinated population censuses around 2030. They took the decision at the CIS Council of Heads of State meeting in Awaza, Turkmenistan on Friday, media reported.
A powerful explosion has been reported at King Khalid International Airport in Riyadh, raising fresh concerns over aviation security in Saudi Arabia as tensions across the region continue to escalate.
Britain and Israel have reached a temporary compromise over the future of the British Consulate General in East Jerusalem, easing a diplomatic dispute that had threatened to further strain relations between the two countries.
South African judge Navanethem “Navi” Pillay won the Nobel Peace Prize on Friday “for her efforts to promote peace and international law,” the Norwegian Nobel Committee said.
The U.S. has imposed sanctions on the International Criminal Court (ICC) on Friday (9 October) escalating tensions with European allies and potentially targeting companies that provide services to the tribunal. The move came hours after former ICC judge Navi Pillay won the Nobel Peace Prize.
Indian police detained more than 2,000 protesters in Delhi on Saturday as authorities blocked a planned demonstration calling for the resignation of Chief Election Commissioner Gyanesh Kumar over disputed changes to voter lists.
At least 12 people, including three children, have been killed in a Russian attack on the Ukrainian city of Zaporizhzhia, a day after U.S. President Donald Trump announced a deal to ease sanctions on Russian diesel.
Ukrainian President Volodymyr Zelenskyy has criticised U.S. President Donald Trump’s decision to ease sanctions on Russian diesel exports, questioning why Moscow was granted an economic benefit without an apparent concession towards ending the war in Ukraine.
Russian President Vladimir Putin expressed surprise after Donald Trump mediated the Armenia-Azerbaijan peace agreement in 2025, the U.S. President said at a rally in New York state on Friday.
The United Nations has condemned a sharp rise in attacks on civilians in Ukraine, reporting that more than 100 people were killed and at least 429 injured in a single week as Russian strikes hit residential areas, passenger buses and critical infrastructure.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment