EU leaders face historic decision on frozen Russian assets

WISE NEWS PRESS / BRUSSELS, BELGIUM — DEC. 18, 2025

European Union leaders are gathering in Brussels for a pivotal two-day summit to decide whether Russia's frozen assets can be used as collateral for loans to support Ukraine's defense and economy.

The majority of Russia's €210 billion in assets held within the EU are managed by the Belgium-based depository Euroclear. Belgian Prime Minister Bart De Wever has expressed deep concern over the proposal, warning that approving the measure without adequate guarantees would be like "jumping into the void." Meanwhile, Ukrainian President Volodymyr Zelenskyy has urged the immediate release of the credit, warning that a lack of funding by spring would force a reduction in drone production.

Proposed aid and financing mechanisms

The European Commission has proposed a €90 billion loan package for Ukraine over the next two years, sourced from the interest and principal of the frozen Russian assets. This funding is intended to cover roughly two-thirds of the €137 billion Kyiv is estimated to need through 2027. While the EU has previously provided Ukraine with the interest earned on these funds, using the assets themselves marks a significant escalation in Western financial pressure on Moscow.

Diplomatic hurdles and legal risks

The plan requires approval from approximately two-thirds of the member states, but several countries, including Hungary, Slovakia, and Italy, remain skeptical. Germany's Chancellor Friedrich Merz has taken a leading role in advocating for the plan, arguing it sends a clear signal to Moscow that continuing the war is futile. However, Belgium remains cautious, particularly as Fitch Ratings has shifted Euroclear’s outlook to negative due to the potential legal and financial risks associated with the Commission's plan.

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