European leaders are facing mounting pressure to decide whether to use Russia’s frozen assets to fund Ukraine’s defence as a critical summit convenes in Brussels. The proposed €90bn loan, backed by immobilised Russian central bank funds held in the EU, has exposed deep divisions among member states, with Poland urging action and Belgium voicing strong reservations.
Polish Prime Minister Donald Tusk warned that Europe must choose between “money today or blood tomorrow”, stressing that the decision was Europe’s alone. Belgian Prime Minister Bart De Wever, however, pushed back against the “reparations loan” plan, arguing that Belgium needs protection against potential Russian retaliation. Moscow has already filed a $230bn damages claim against Euroclear, the Brussels-based depository holding most of the frozen assets.
German Chancellor Friedrich Merz, a key proponent of the frozen assets scheme, said he believed an agreement could be reached despite Belgian concerns. European Commission President Ursula von der Leyen declared she would not leave the summit without a solution, adding that “there is no more important act of European defence than supporting Ukraine’s defence.”
Italy has emerged as an ally of Belgium, with Prime Minister Giorgia Meloni arguing that using frozen assets without a solid legal basis would hand Russia “the first victory since the start of the war.” She backed joint EU borrowing as a safer alternative. Merz acknowledged the odds of winning approval for the frozen assets plan were “50/50”, but stressed the €90bn would finance Ukraine’s army for at least two more years.
The European Commission has proposed two options: joint EU borrowing or a loan secured against Russia’s frozen assets. The latter would be repaid only if Moscow eventually pays reparations. EU officials insist Russia’s claim on the assets would not be affected, but Moscow has labelled the move theft and vowed retaliation.
