EU close to deal on Russian assets, summit to go on until agreement

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.

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