European Union leaders reached an agreement on Thursday to address Ukraine’s urgent financial needs over the next two years. However, they did not approve a controversial proposal to utilize frozen Russian assets for a substantial loan of 140 billion euros ($163.27 billion) to support Ukraine amid its ongoing conflict with Russia. Belgium’s reservations played a critical role in this decision, as a Belgian financial institution, Euroclear, manages the assets earmarked for the potential loan.
At a summit in Brussels, many EU governments had anticipated a green light for the proposal, hoping to instruct the European Commission to prepare a formal legal plan within weeks. Nevertheless, the leaders opted for a more cautious approach, requesting the Commission to evaluate Ukraine’s financing requirements rather than outright endorsing the asset-utilization concept.
European Commission President Ursula von der Leyen acknowledged the complexity of the situation, stating that while the discussion had progressed, further clarifications were necessary. The summit concluded with a commitment to revisit the issue in December, aiming for a potential agreement.
Ukrainian President Volodymyr Zelenskiy attended the summit and urged EU leaders to expedite the approval of the loan proposal, warning that any delays would impede not only Ukraine’s defense capabilities but also the EU’s collective progress. He emphasized that a significant portion of the funds would be allocated to procure European weapons, thereby enhancing Ukraine’s air defense and frontline positions, which he highlighted as vital for saving lives.
Despite Zelenskiy’s call for urgency, Belgian Prime Minister Bart De Wever expressed the need for stringent legal guarantees before he could support the plan. He underscored the importance of shared financial responsibilities among EU members should there be any repercussions from Russia. De Wever also called for the inclusion of Russian assets held by other nations to be part of the financial support framework.
As discussions concluded, both von der Leyen and European Council President Antonio Costa expressed optimism that a workable solution could be formulated, indicating a continued commitment from EU leaders to find a financial support mechanism for Ukraine.
The outcome of this summit reflects ongoing EU diplomacy in support of Ukraine amid the challenging backdrop of the conflict, suggesting that sustained efforts may lead to actionable financial assistance and reinforce Ukraine’s defense capabilities. This sentiment of unity and resilience is crucial as Ukraine continues to navigate its path forward against the aggression it faces.