European Union leaders are facing mounting pressure to use frozen Russian state assets to finance Ukraine’s defence, as momentum builds behind a proposed €90bn loan ahead of a critical Brussels summit focused on long-term support for Kyiv.
Growing calls ahead of Brussels summit
In the days leading up to the summit, senior EU officials, policymakers and several member states have intensified calls for decisive action on Russia’s immobilised assets held within the bloc. Around €200bn in Russian central bank reserves remain frozen in Europe following Moscow’s full-scale invasion of Ukraine. Proponents argue that these funds should be leveraged to strengthen Ukraine’s military capabilities and provide predictable financing as the war drags into its fourth year.
The €90bn loan proposal
At the centre of the debate is a proposal to raise a €90bn loan backed by future proceeds generated from the frozen Russian assets, rather than directly confiscating the capital. Supporters view this structure as a legally safer route that could unlock significant funding without breaching international law. The funds would be directed primarily towards Ukraine’s defence needs, including weapons procurement, air defence systems and industrial-scale ammunition production.
Legal and political divisions persist
Despite growing support, the proposal remains politically sensitive. Several member states continue to voice concerns over legal precedent, warning that outright seizure or aggressive use of sovereign assets could undermine confidence in the eurozone as a safe destination for foreign reserves. Others fear potential retaliation by Russia, including asset seizures or legal challenges. However, advocates counter that Russia’s ongoing aggression and destruction of Ukrainian infrastructure provide a strong moral and legal justification for action.
Strategic urgency as US uncertainty looms
The debate has taken on added urgency amid uncertainty over the future scale of US military assistance to Ukraine. European leaders increasingly acknowledge that the EU must be prepared to shoulder a larger share of the financial and military burden. Using frozen Russian assets is seen by many as a way to demonstrate strategic autonomy while avoiding direct increases in national defence spending or politically difficult budget reallocations.
Ukraine’s financing gap and battlefield realities
Ukraine continues to face a widening financing gap as the costs of defence, reconstruction and basic state functions rise. Military officials have repeatedly stressed that delays in funding translate directly into battlefield vulnerabilities. EU officials argue that a long-term, asset-backed funding mechanism would give Kyiv greater certainty and enable more effective defence planning, rather than relying on ad hoc aid packages.
A test of European resolve
The outcome of the Brussels summit is widely seen as a test of the EU’s political resolve and unity. Backing the €90bn loan would mark a significant escalation in Europe’s financial response to the war and send a strong signal to Moscow. Failure to agree, however, could expose internal divisions and raise questions about the EU’s ability to sustain support for Ukraine over the long term.
As pressure mounts, EU leaders must now balance legal caution with strategic necessity. The decision on whether and how to deploy frozen Russian assets could shape not only the trajectory of the war in Ukraine, but also the future role of Europe as a geopolitical and financial actor.
Newshub Editorial in Europe – 18 December 2025
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