Brussels: European Union leaders indicated growing consensus on tapping billions of euros in frozen Russian assets to provide financial support to Ukraine, Polish Prime Minister Donald Tusk announced on Thursday following high-level talks in Brussels. The initiative, seen as a potential cornerstone of EU backing for Kyiv, would rely on immobilized funds seized under sanctions imposed after Russia’s full-scale invasion, though significant legal and technical challenges remain before implementation.
The discussions focused on the so-called reparations loan mechanism, which envisions lending money to Ukraine backed by approximately €210 billion in frozen Russian assets held across EU jurisdictions. Of this total, Belgium holds the largest portion around €185 billion within its Euroclear depository. Prime Minister Tusk described the approach as fair and just, emphasizing that the EU has a responsibility to support Ukraine while ensuring proper safeguards are in place.
“EU leaders agree in principle that using these frozen funds is fair,” Tusk said, but he stressed that the plan must overcome numerous procedural and legal hurdles before any funds can be mobilized.
Several EU member states have voiced concerns over potential legal challenges and retaliatory measures by Russia. Belgian authorities, holding the bulk of the frozen funds, have repeatedly sought assurances that they will not shoulder disproportionate financial or legal risks. Russian officials have already indicated a willingness to pursue litigation against European financial institutions, accusing them of improperly handling frozen assets.
Tusk acknowledged these challenges, noting that some countries remain hesitant due to domestic political considerations or questions of fiscal liability. “Negotiations will continue,” he said, highlighting the delicate balance between solidarity with Ukraine and protection of EU member states’ financial stability.
The EU’s deliberations come at a critical moment for Ukraine, as Kyiv seeks stable financial support to sustain its war effort and economic stability through 2026 and 2027. Leaders are exploring ways to structure financing without resorting to joint EU borrowing, a politically sensitive issue across the bloc. The emerging consensus on using frozen Russian assets, Tusk noted, represents an important symbolic and practical commitment to Ukrainian resilience.
The proposed plan is being closely watched as a measure of EU cohesion and credibility. Analysts suggest that swift agreement would send a strong message of solidarity with Ukraine and demonstrate the EU’s capacity to turn sanctions into practical support for conflict-affected nations. Conversely, delays or disagreements could expose divisions within the bloc and weaken its influence on the international stage.
EU officials emphasized that while the principle of fairness has been recognized, the details of implementation including legal safeguards, procedural mechanisms, and protections against retaliation remain under negotiation. Leaders aim to finalize a framework that balances moral responsibility with prudence, ensuring that Ukraine receives necessary support while EU member states are shielded from excessive risk.
Further meetings are planned to work out the technicalities of the reparations loan. For Poland and other supporting nations, the initiative is not just a financial measure but also a signal of the EU’s commitment to justice and international accountability. As Tusk remarked, using Russian assets to support Ukraine could become a defining moment in the EU’s collective response to Moscow’s aggression and a key demonstration of unity among member states.