EU leaders meet over Ukraine loan plan from frozen Russian assets

Leaders of the 27 EU member states convened in Brussels on Thursday for a two-day European Council summit, with Ukraine, frozen Russian assets and a proposed financial support mechanism at the top of the agenda. The talks come at a critical moment as the EU weighs how to sustain Kyiv financially while managing internal economic pressures and regional security concerns.Ukraine support and budget debates

EU leaders are set to examine options for continued assistance to Ukraine, including security guarantees and diplomatic pathways toward peace, alongside progress on the bloc’s next multiannual budget covering 2028 to 2034. Enlargement, the EU’s geo-economic outlook and coordination with partners such as Türkiye are also expected to feature prominently.

Loan plan linked to Russian assets

A central focus of the summit is the proposal to raise funds for Ukraine by borrowing against profits generated from immobilized Russian state assets. The issue has gained urgency after the EU decided to keep those assets frozen indefinitely, a move that has intensified legal and political debate within the bloc.

Parliament and member state positions

Earlier this week, the European Parliament agreed to accelerate work on draft legislation tied to the loan, paving the way for a vote during its January plenary session. If EU leaders endorse the plan in Brussels, lawmakers could deliver final approval later in the month, though concerns remain, particularly from Belgium, where most of the roughly €210 billion in frozen Russian assets are held by the financial services firm Euroclear.