E.U. Leaders Debate Plan for Ukraine Financed by Frozen Russian Assets

European Union leaders are meeting Thursday to tackle several major challenges, including an aggressive Russia, a strained relationship with the United States, and the ongoing war in Ukraine.

The central goal of the European Council meeting in Brussels is for the 27 member nations to agree on a plan to use frozen Russian government assets within Europe to provide a substantial loan to Ukraine. This loan would support Ukraine's war efforts in 2026 and 2027.

That said, the reality is a bit more complicated. reaching an agreement is expected to be difficult. Belgium, where the majority of the 210 billion euros (approximately $247 billion) in frozen assets are held, has expressed strong reservations about the proposal. Belgium is seeking assurances that other European countries will share any potential legal repercussions if Russia retaliates.

Belgium also wants countries holding smaller amounts of frozen Russian assets, such as Britain and France, to utilize those funds for loans as well. These assets were frozen after Russia's invasion of Ukraine in 2022.

EU officials, ambassadors, and leaders have been engaged in intense discussions to find compromises. As the meeting begins, it remains uncertain whether these efforts will be sufficient to overcome the disagreements. While some analysts believe Belgium will eventually concede, possibly due to domestic political considerations, leaders lack a clear alternative plan if an agreement isn't reached.

According to officials, the European Council meeting, which includes heads of state and government, will continue until a decision on funding for Ukraine is made. There is speculation that the meeting could extend for several days, possibly even until Christmas.