Zelensky presses EU to unlock frozen Russian assets for Ukraine as Brussels summit weighs loan plan

Ukraine's President Volodymyr Zelensky told European Union leaders at a Brussels summit that an agreement is needed by the end of the year to fund Kyiv’s military and economic needs from Russia’s frozen assets in Europe. He warned that without a cash injection by spring, Ukraine could face reductions in drone production and other critical supports for its defense. Zelensky’s remarks underscored the urgency felt in Kyiv as the war extended into 2024 and into a potential new phase of negotiations.

About €210 billion in Russian assets are frozen in Europe, with the bulk held by Belgium-based Euroclear. The European Commission has proposed lending Kyiv roughly €90 billion over the next two years from that pool, roughly two-thirds of Kyiv’s estimated financing needs through 2026 and 2027. Up to now, the EU has channeled only the interest generated by the funds; converting that into a direct cash infusion would be a shift in policy and a test of legal and political will across member states.

The plan hinges on a legal framework that many governments say must be solid and clearly enforceable. EU officials frame the move as a loan, not a reparations payment, and insist there is a sound legal basis for using the frozen assets. However, Belgium and a few other member states have expressed misgivings or require additional assurances before they can back a decision that would shift money from a state asset pool to immediate military and reconstruction funding for Ukraine. The vote would be a qualified majority, requiring at least 15 member states and 65 percent of Europe’s population to approve.

The summit comes as Brussels has faced pressure from a coalition of Baltic and Central European states urging rapid action, while northern and southern European governments weigh political and legal risks. EU Commission President Ursula von der Leyen, speaking to lawmakers in the European Parliament, insisted there were two viable paths and urged a resolution at the summit. German Chancellor Olaf Scholz’s allies have also sought a clear signal that Europe will sustain Kyiv’s long-term needs, even as some capitals argue for caution.

Belgian Prime Minister Alexander De Wever has warned against acting without broad consensus, saying there would be consequences if the plan were pushed through without Belgium or other key partners signing on. Orban’s Hungary has emerged as one of the most vocal critics, signaling ahead of the summit that the frozen-assets idea should perhaps not be on the agenda. Slovakia’s Robert Fico has also voiced skepticism if the funds were earmarked for weapons rather than reconstruction or civilian needs. Italian Prime Minister Giorgia Meloni has indicated support if the legal basis is solid, warning that otherwise Ukraine would gain a victory for Russia by default through insufficient safeguards. Other governments have voiced mixed positions, underscoring the challenge of achieving a bloc-wide accord.

A second option discussed by EU officials would involve borrowing on international markets with the EU budget guaranteed. That approach would require unanimous consent, a bar Hungary has signaled it will not clear. In recent days, Belgium and other capitals have voiced concerns about the legal exposure and the potential financial guarantees that might be needed to backstop such arrangements. Fitch placed Euroclear on a negative watch tied to perceived legal and balance-sheet risks tied to the asset-use plan.

If the funds are approved, Ukraine would receive a direct cash infusion that Kyiv officials say would be allocated to sustaining military operations in the near term and, if peace allows, redirected toward reconstruction. European Commission officials emphasize that any use of frozen assets would be subject to strict oversight and transparent accounting to ensure compliance with European law and avoid unintended consequences for European financial stability.

The broader geopolitical backdrop includes Moscow’s insistence that its assets remain untouched and its legal action in a Moscow court seeking to reclaim the funds. Russia has warned EU leaders against using the money, while Kyiv relies on the potential reserves to sustain its war effort and its post-war recovery plans. In Washington, discussions have continued on a broader peace framework, with U.S. and Russian representatives preparing to meet in Miami. Kremlin envoy Kirill Dmitriev is expected to engage with U.S. intermediaries, including Jared Kushner and Steve Wittenoff, as part of ongoing efforts to shape a path toward a negotiated end to the conflict.

Zelensky has argued that the funds would be both moral and legal, aligning with professional assessments that the assets are a responsibility of the international community to support Ukraine’s defense and recovery. EU officials have stressed that the decision is primarily political and legal rather than symbolic, given the war’s ongoing human and economic toll on Ukraine and the broader European security environment. Kyiv’s leadership maintains that the time to act is now, as the year-end deadline approaches and the region remains in a heightened state of alert about possible new offensives and renewed fighting in the winter.

As the Brussels talks proceed, officials say there is a palpable sense of urgency, tempered by the reality that a robust agreement will require careful calibration of legal justifications, budgetary implications, and political coalitions across the 27-nation bloc. The outcome remains uncertain, with opponents warning of financial and legal risks and supporters insisting that the money is necessary to deter further aggression and preserve Ukraine’s sovereignty and stability.

In the meantime, Kyiv continues to press allies for rapid deployment of resources, while European capitals weigh the balance between immediate military needs and long-term financial and legal considerations. The next hours are expected to shape not only Ukraine’s immediate trajectory but also Europe’s post-war security architecture and the bloc’s role in sustaining a European-scale response to Russia’s invasion.