European Union leaders came together on Thursday to tackle Ukraine’s pressing financial needs for the upcoming two years, reaching a preliminary agreement. However, the leaders decided against a contentious proposal to tap into frozen Russian assets to generate a significant loan of 140 billion euros (approximately $163.27 billion) for Ukraine during its ongoing conflict with Russia. This decision was influenced by Belgium’s concerns, particularly due to the involvement of the Belgian financial institution Euroclear, which manages the assets being considered for the loan.
During the summit held in Brussels, many EU governments had hoped for the approval of the asset-utilization proposal, which would have led the European Commission to prepare a formal legal framework swiftly. Instead, they opted for a more measured response, directing the Commission to assess Ukraine’s funding needs without directly supporting the controversial asset plan.
European Commission President Ursula von der Leyen acknowledged the complexities surrounding the issue, stating that while discussions had advanced, more clarifications were essential. The summit wrapped up with a promise to revisit the matter in December, with the possibility of a revised agreement.
Ukrainian President Volodymyr Zelenskiy participated in the summit, pressing EU leaders to swiftly approve the loan proposal. He cautioned that any holdups would hinder Ukraine’s defense capabilities and the EU’s collective momentum. Zelenskiy indicated that a substantial portion of the funds would be dedicated to purchasing European weapons, crucial for enhancing Ukraine’s air defense and strengthening frontline positions, which he described as vital for saving lives.
Despite Zelenskiy’s urgent appeal, Belgian Prime Minister Bart De Wever emphasized the necessity for strong legal assurances before he could back the plan. He highlighted the importance of shared financial obligations among EU states to mitigate any potential repercussions from Russia and suggested that Russian assets held by other nations should also be incorporated into the financial assistance framework.
As discussions wrapped up, both von der Leyen and European Council President Antonio Costa expressed hope that a viable solution could be developed, reaffirming EU leaders’ dedication to establishing a sustainable financial support system for Ukraine.
This summit outcome illustrates the EU’s ongoing diplomatic engagement in support of Ukraine amidst challenging circumstances, indicating that continued efforts may pave the way for concrete financial assistance and bolster Ukraine’s defense capabilities. The solidarity and resilience displayed during this summit are essential as Ukraine endeavors to secure its future against ongoing aggression.