EU Leaders Pledge Financial Aid for Ukraine, Delay Decision on Using Frozen Russian Assets

European Union leaders have agreed to meet Ukraine’s urgent financial needs for the next two years but postponed a final decision on a controversial plan to use frozen Russian assets to fund a €140 billion ($163 billion) loan for Kyiv. The delay comes amid legal and financial concerns raised by Belgium, whose financial institution, Euroclear, holds a significant portion of the frozen assets.

At the Brussels summit, EU leaders—excluding Hungary’s pro-Russian Prime Minister Viktor Orban—adopted a softened declaration requesting the European Commission to explore “options for financial support based on an assessment of Ukraine’s financing needs.” The agreement emphasized that Russian assets would remain immobilized until Moscow ends its invasion and compensates Ukraine for war damages. A final deal is expected to be pursued in December.

European Commission President Ursula von der Leyen acknowledged the complexity of the issue, stating that “points still need to be clarified.” Ukrainian President Volodymyr Zelenskiy, attending the summit, urged swift action, stressing that delays in using frozen Russian funds hinder both Ukraine’s defense and the EU’s progress. He said Kyiv would use a major share of the funds to purchase European-made weapons, reinforce air defenses, and strengthen frontline positions.

Belgian Prime Minister Bart De Wever demanded strong legal guarantees and burden-sharing among EU nations, warning that without assurances, he would oppose the plan at both European and national levels. He insisted the scheme’s legality and repayment safeguards must be clarified before approval.

Despite the setback, von der Leyen and European Council President Antonio Costa expressed optimism that technical challenges could be resolved. Costa reaffirmed that “the solution is feasible.” Meanwhile, Russia has denounced the proposal as an illegal seizure of property and threatened retaliation.