Von der Leyen Demands EU Agreement on €135.7 Billion Ukraine Plan

WISE NEWS PRESS / BRUSSELS, BELGIUM — NOVEMBER 18, 2025

European Commission President Ursula von der Leyen has formally requested that EU member states agree by December on a plan to cover Ukraine's estimated €135.7 billion in military and financial needs for the years 2026 and 2027.

In a letter to member states, von der Leyen emphasized the "particularly dire" scale of financing required, arguing that Europe "cannot afford to be paralyzed" by seeking "perfect or simple solutions" that do not exist. She stressed that "rapidly reaching a clear commitment on how to provide the necessary financing for Ukraine is key" at the December European Council meeting.

Massive Financial Need and Funding Options

The estimation, based partly on IMF and Kyiv assessments, operates on the assumption that Russia's large-scale war will continue through late 2026. The total required financing for 2026 and 2027 includes:

• Military Financing: €83.4 billion, to fund the Ukrainian armed forces.

• Economic Stability: €55.2 billion, to stabilize the economy and cover the budget deficit.

Von der Leyen detailed three main options for financing, noting the legal and political complexities of each:

1. Bilateral Contributions: €90 billion in grants from member states' national budgets.

2. Joint Borrowing: €90 billion in common EU debt, which would require unanimous approval to change budget legislation (a challenge given Hungary’s opposition).

3. Compensation Loan (Preferred): A €140 billion loan backed by seized Russian assets. This option avoids new debt or direct national budget contributions, instead using cash balances derived from immobilized assets of the Russian Central Bank (largely held in Euroclear in Belgium). Ukraine would only be required to repay the loan if Moscow agrees to pay reparations.

Legal Risks and Political Resistance

While the third option is attractive financially, von der Leyen acknowledged the risks, warning of "potential chain effects" and legal challenges.

Belgium, which holds a large portion of the Russian assets, has expressed the strongest resistance. Belgium is demanding maximum legal certainty and a total burden-sharing agreement among EU members to defend against potential Russian retaliation and lawsuits.

Von der Leyen met with Belgian Prime Minister Bart De Wever last Friday to advance discussions, where progress has so far been limited.

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