European leaders face mounting pressure to decide on using Russia's frozen assets to fund Ukraine's defence, as a critical summit convenes in Brussels. Poland's Prime Minister Donald Tusk warned of a stark choice between 'money today or blood tomorrow', emphasising that Europe must act alone to support Ukraine amid Russian advances on the battlefield.
Belgium's Prime Minister Bart De Wever expressed concerns about potential Russian retaliation, as Brussels hosts most of the €210bn in immobilised Russian assets. He argued that joint EU borrowing backed by unallocated budget funds is safer, though Hungary has threatened to veto such a plan. German Chancellor Friedrich Merz, a strong proponent of the frozen assets scheme, said he hoped to address Belgium's concerns and reach an agreement.
European Commission President Ursula von der Leyen insisted on finding a solution, stating that 'there is no more important act of European defence than supporting Ukraine's defence'. She proposed two options: joint EU borrowing or a 'reparations loan' secured against Russia's frozen assets, with the loan repaid only if Moscow pays reparations.
Italy's Prime Minister Giorgia Meloni backed Belgium's stance, warning that using frozen assets without a solid legal basis would hand Russia 'the first victory since the start of the war'. Russia has denounced the plan as theft and vowed retaliation, with its central bank seeking $230bn in damages against Euroclear, the Brussels-based depository holding the assets.
Merz estimated a 50/50 chance of securing an agreement on the €90bn loan, which would finance Ukraine's army for at least two more years. EU officials maintain that Russia's claim on the assets would not be affected, but Moscow argues otherwise and has threatened countermeasures.
