Thursday, October 23, 2025 - The European Union is set to agree in principle on Thursday, October 23, to provide Ukraine with the necessary financing for the next two years, according to EU Council chief Antonio Costa.
This commitment comes amid a high-stakes debate, including a
Belgian threat to block the controversial plan to use frozen Russian assets to
aid Kyiv.
Arriving at a summit of EU leaders, Belgian Prime Minister
Bart De Wever laid out three specific demands regarding the use of Russian
immobilised assets to provide a 140-billion-euro ($163.27 billion) loan to
Ukraine.
De Wever warned that if his demands are not met, he
would "do everything in my power... politically and legally to stop this
decision." Belgium is central to the plan as it holds the bulk of the
frozen assets via the securities depository Euroclear.
De Wever demanded that all EU members share the legal and
financial risks associated with the plan, meaning they must share the costs of
any legal action pursued by Russia and contribute financially if the money ever
had to be paid back. He also called for transparency on the legal basis for the
decision and insisted that Russian frozen assets held by other countries be
included in the scheme.
Despite this challenge, Costa, arriving at the summit with
Ukrainian President Volodymyr Zelenskiy, made clear the EU would ensure Kyiv's
financial needs were covered for 2026 and 2027, including for the acquisition
of military equipment. The leaders are expected to formally task the European
Commission with developing a legal proposal for the frozen assets plan.
At the summit, EU leaders will reiterate their backing for
Ukraine's territorial integrity. Ukraine's leader received a boost as the bloc
formally approved a new sanctions package against Russia on Thursday. The
package includes a ban on Russian liquefied natural gas (LNG) from January
2027, as well as new measures targeting the so-called shadow tanker fleet and
two independent Chinese oil refineries.
Zelenskiy welcomed the new EU sanctions, following a
turbulent few days that saw the U.S. postpone a planned meeting between
President Trump and Vladimir Putin and hit Russia's major oil companies with
sanctions on Wednesday.
Even before a formal proposal on the frozen assets was made,
EU countries began wrangling over the conditions to impose on the
"reparations loan." Some members want the funds exclusively for
Ukraine's military, with the bulk spent on European weapons.
Others argue Kyiv should have the autonomy to use some of
the loan for general budget support or to buy arms from outside Europe. A
senior Ukrainian official emphasized that Kyiv needs the funds by the end of
the year and requires autonomy over how to spend them. Russia has described the
idea of using the frozen assets as an illegal seizure of property and has
warned of retaliation.
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