At this Thursday’s EU summit, leaders will decide whether to tap frozen Russian assets to back a €90bn loan for Ukraine’s defense. The proposal marks a high-stakes test of the bloc’s unity and strategic resolve.
Inside the plan
The European Commission wants to use up to €210bn in frozen Russian central bank assets, mostly held at Euroclear in Brussels, as collateral. By borrowing against these assets, the EU could extend a €90bn loan—covering roughly two-thirds of Kyiv’s 2026–27 budget needs.
Pros and cons
Supporters argue this move would secure steady financing for Ukraine’s military effort without tapping member budgets. Opponents warn of legal hurdles, potential credit rating impacts, and the risk of fracturing EU cohesion if Russia contests the move in court.
What if talks fail?
Without agreement, Ukraine faces a funding gap as interest income from frozen assets won’t be enough. The EU might pivot to increased national contributions, seek backing from the International Monetary Fund, or accelerate bond issuances in financial markets.
Why it matters
As the conflict nears its fourth anniversary, the decision will signal how far the EU is willing to go to support Ukraine and deter further aggression. It also tests innovative financing tools in geopolitical crises—setting a blueprint for future emergencies.
Keep an eye on Thursday’s summit as Europe charts its course between solidarity, legality, and strategic finance in a rapidly shifting global battlefield.
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EU plan to use frozen Russian assets to fund Ukraine: what's at stake?
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