By Gloria Ogbonna
European leaders gathering for high-stakes talks have been confronted with a stark and unsettling choice: provide money now to support Ukraine, or risk bloodshed later across the continent.
That warning set the tone as heads of state and government entered crunch European Council meetings to debate whether to approve a controversial financial mechanism that would use frozen Russian assets to secure a massive loan for Ukraine.
On Thursday, leaders of European Union member states convened for what were expected to be day-long deliberations on a proposal to unlock Russian assets currently frozen in European countries.
The plan would use those funds as guarantees for a large loan intended to keep Ukraine financially afloat. According to EU estimates, Kyiv requires as much as $160 billion over the next two years to cover both military operations and essential civil spending. Without urgent intervention, officials warn Ukraine could face a severe cash shortfall as early as next spring.
Ukrainian President Volodymyr Zelensky underscored the urgency of the situation earlier in the day, cautioning that failure to approve the deal would create “a big problem for Ukraine.” European Commission President Ursula von der Leyen echoed that sentiment, framing the issue as central to Europe’s broader strategic goals.
“We have one ultimate goal in this European Council,” she said, “and that is peace for Ukraine peace through strength. For that, Ukraine needs secure funding for the next two years. The most important part is that, at the end of the day, we have secured that funding.”
Until now, Europe’s financial support for Ukraine has largely come from the interest generated on roughly $250 billion in Russian assets frozen in European banks since the invasion began. The new proposal goes much further. Instead of using only the interest, Ukraine would effectively borrow against the principal itself.
That loan would be counted against potential future Russian war reparations, assuming Moscow is eventually defeated and ordered to compensate Ukraine. In theory, once Ukraine repaid the loan to Brussels using those reparations, the European Union could then return the seized assets to Russia.
The proposal, however, has triggered deep unease among several European capitals. Belgium, in particular, has emerged as a key obstacle. As home to the Euroclear securities system where a significant portion of the frozen Russian wealth is held Belgium has so far blocked the plan.
Belgian officials fear that allowing those funds to be used in the war could expose the country to retaliation from Russia in the future. Much of Thursday’s meeting was therefore focused on finding ways to reassure Belgium or bypass its objections altogether.
Hungary has also taken a firm stand against the loan and against broader financial assistance to Ukraine. Budapest’s position is shaped both by its long-standing strained relationship with Kyiv and by its reluctance to push Europe closer to a direct confrontation with Russia. Hungarian Prime Minister Viktor Orbán was blunt ahead of the talks, reportedly calling the proposal “stupid.”
He argued that the European Union is not a party to the war and should not confiscate one combatant’s money to fund the other. “It’s marching into the war,” Orbán said, adding that Belgium’s concerns were justified and should not be ignored.
Opposition to the plan is not limited to Europe. According to reports in The Times of London, the United States has also expressed reservations behind the scenes. Washington is said to be lobbying European governments to block the deal, arguing that it conflicts with President Trump’s push for a negotiated peace.
From this perspective, using Russia’s frozen assets to fund Ukraine’s war effort could reduce Moscow’s incentive to come to the negotiating table, as the possibility of economic reintegration with the global system would grow increasingly remote.
The report cited an unnamed Ukrainian official as its source, though the White House publicly downplayed the claims. Press secretary Anna Kelly dismissed the reports, saying that “spitballing from anonymous sources who were not present for these discussions should not be taken seriously.”
Despite the resistance, pressure on European leaders to approve the loan continues to intensify. Poland, one of the EU’s most hawkish voices on Russia and a country that would likely sit on the front line of any wider European conflict, has strongly backed the proposal.
Polish Prime Minister Donald Tusk framed the decision in dramatic terms, presenting the loan not merely as financial assistance to Ukraine, but as an investment in Europe’s own security. “We have a simple choice,” Tusk said.
“Either money today, or blood tomorrow. And I’m not talking about Ukraine only — I’m talking about Europe.”
Putin Says Russia Will Use ‘Military Means’ to Extend Gains in Ukraine if Peace Talks Failhttps://t.co/PdvhXFZGjA
— Breitbart London (@BreitbartLondon) December 17, 2025
Russia, meanwhile, has responded with fury. President Vladimir Putin denounced the proposal as “piracy,” hurling insults at European leaders and warning of severe consequences.
Moscow has threatened the “harshest” retaliation should the plan move forward, making clear that, in Russia’s view, Europe will pay a price regardless of the decision it makes.
As European leaders debate behind closed doors, the outcome remains uncertain. What is clear, however, is that the decision carries enormous financial, political, and security implications — not just for Ukraine, but for the future stability of Europe itself.
Source Breitbrat
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