EU Leaders Meet in Brussels to Finalise €90 Billion Ukraine Loan Backed by Frozen Russian Assets
EU leaders debate massive Ukraine loan from frozen assets.
European Union leaders gathered in Brussels on December 18, 2025, for a pivotal summit chaired by European Council President António Costa, with the primary objective of finalizing a substantial financial package for Ukraine, centering on a proposed €90 billion reparations loan secured against approximately €210 billion in immobilized Russian central bank assets to meet Kyiv's pressing military and budgetary requirements for 2026 and 2027.
The International Monetary Fund assesses Ukraine's needs at around €137 billion over the next two years amid the protracted conflict; the EU's plan aims to provide roughly two-thirds through this mechanism, where funds would be loaned to Ukraine with repayment contingent solely on future Russian reparations, preserving Moscow's legal ownership of the underlying assets.
European Commission President Ursula von der Leyen underscored the imperative nature of the decision in remarks to lawmakers on the summit eve, declaring that bolstering Ukraine's defense constitutes the paramount act of European security, while Costa pledged to extend negotiations indefinitely if required to secure unanimous or qualified majority approval among the 27 member states.
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Belgium emerges as the principal holdout, as it hosts the bulk of the frozen assets—estimated at €185 billion—at the Brussels-based depository Euroclear, expressing apprehensions over potential Russian legal countermeasures and broader implications for eurozone stability and investor confidence, despite recent EU measures to indefinitely immobilize the assets and mitigate veto risks from nations like Hungary.
Opposition also lingers from countries including Hungary, Slovakia, Bulgaria, Italy, and Malta, which seek robust guarantees against liabilities; amid escalating Russian lawsuits against Euroclear and warnings of retaliation, proponents argue the innovative approach aligns with international law, avoids direct taxpayer burdens, and signals resolute European commitment as external pressures mount for negotiated resolutions to the war.
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