EU summit: Russian frozen assets for Ukraine top agenda

European Union leaders from the 27 member states convened in Brussels on December 18, 2025, to address pressing issues facing the bloc. Discussions are expected to center on financial aid for Ukraine, particularly in light of the United States scaling back its support under the Trump administration.

Other key topics on the agenda include:

• The EU's geo-economic situation
• EU enlargement policy
• European defense strategies
• The long-term budget for 2028-2034

Additionally, a controversial trade agreement with the Mercosur trading bloc will be addressed on the sidelines of the summit.

A major point of contention revolves around the proposal to utilize frozen Russian assets to fund Ukraine. While some member states and the European Commission support this approach, Belgium, Hungary, and Slovakia are opposed. Belgium is particularly concerned about potential retaliation from Moscow, given that a significant portion of the frozen assets are held within its borders. Prime Minister Bart de Wever has advocated for the EU to take on joint debt to finance Ukraine instead, citing a lack of legal guarantees regarding the use of Russian assets. The Russian central bank has already filed a lawsuit in Moscow, seeking $230 billion in damages from the Belgium-based clearing house Euroclear.

European Council President Antonio Costa stated that leaders would not leave the summit without reaching a final decision on ensuring Ukraine's financial needs for 2026 and 2027. German Chancellor Friedrich Merz voiced his support for using frozen Russian assets, stating he sees "no better option." Commission President Ursula von der Leyen presented two proposals for financing the €90 billion loan to Ukraine: borrowing against the EU budget or through a "reparations loan."

French President Emmanuel Macron expressed confidence that a compromise would be reached on Ukraine funding but signaled opposition to the Mercosur deal in its current form, siding with French farmers who fear it would negatively impact their livelihoods. Thousands of farmers are protesting in Brussels over the Mercosur deal, fearing that less-regulated products from South America would undercut EU produce. Hopes of signing the EU-Mercosur deal, which would create the world's biggest free-trade zone, were dashed when Italy joined France in calling for a delay.

The EU summit occurs against the backdrop of a new "America First" security strategy from the US, raising concerns about the future of transatlantic relations. Ukrainian President Volodymyr Zelenskyy has urged the EU to demonstrate unwavering financial support for his country, sending a message to Russian President Vladimir Putin that prolonging the conflict is futile. The International Monetary Fund (IMF) estimates that Kyiv requires €137 billion in financial assistance over the next few years. The European Commission has proposed a €90 billion "reparations loan" to Ukraine, sourced from the roughly €210 billion in frozen Russian assets held in the EU.