EU Deadlocked Over €90bn Loan to Ukraine from Frozen Russian Cash
EU leaders are gridlocked in fierce talks over a massive €90 billion (£79bn) loan to Ukraine — money frozen from Russian assets. President Volodymyr Zelensky has issued a stark warning: time is running out. Without this cash injection, Ukraine’s finances could dry up within months.
Zelensky’s Urgent Plea at Brussels Summit
The European Commission proposes loaning Kyiv €90bn over two years, tapping into Russia’s €210bn frozen assets held in the EU. This would cover nearly two-thirds of Ukraine’s projected €137bn needs for 2026-27.
“I hope we will be able to get a positive decision. Without this there will be a big problem for Ukraine,” Zelensky told reporters.
Most of the frozen Russian funds sit with Belgium-based Euroclear. So far, the EU has only used interest earned from this money for Ukraine, not the main pot. The new plan aims to unlock the bulk of these frozen billions.
Belgium and EU at Odds Over “Reparations Loan”
But Belgium and some other EU countries are fiercely opposed to using the funds as “reparations loans,” citing huge legal risks. Belgian PM Bart De Wever shot down the plan, saying, “I haven’t yet seen any text that would persuade me to change Belgium’s position.”
Russia has already sued Euroclear in Moscow to reclaim the assets, warning the EU to keep hands off the money. Moscow brands any EU military support for Ukraine as a “red line.”
European Commission President Ursula von der Leyen vowed: “We will not leave the summit without a solution.” A Brussels insider described the mood as “cautiously optimistic, not overly optimistic.”
Ukraine Faces Financial Cliff as Pressure Builds
The summit is critical. Zelensky needs the funds to keep fighting if the war drags on – or to rebuild if peace breaks out. Without the cash, Ukraine’s defence and recovery faces collapse.
Tensions simmer globally. Donald Trump claims a peace deal is closer than ever, with US and Russian officials set to meet in Miami this weekend. Kremlin envoy Kirill Dmitriev is expected to join Trump envoys Steve Witkoff and Jared Kushner. Ukrainian officials will also meet US diplomats.
The conflict erupted with Russia’s 2022 invasion, devastating Ukraine’s economy and infrastructure. Putin has lashed out at Europe, calling it in “total degradation” and mocking “European piglets” hoping to profit from Russia’s downfall — comments coming as the EU debates what to do with frozen Russian billions.
Frozen Funds Standoff Exposes Deep EU Divisions
The deadlock highlights a tangled mess of legal and political issues. Some EU states argue frozen Russian assets can be used as rightful reparations. Others warn of risky legal precedents and feared Russian retaliation.
Stay tuned as this high-stakes showdown unfolds — the fate of billions and Ukraine’s future hang in the balance.
