EU leaders had hoped to agree on a plan to finance a 140 billion euro loan to support Ukraine.
Published October 23, 2025
European Union leaders agreed to help Ukraine finance its fight against Russian aggression, but failed to approve plans to use frozen Russian assets to do so after Belgium objected.
EU leaders met in Brussels on Thursday to discuss Ukraine’s “pressing financial needs” for the next two years. Many leaders had hoped the talks would pave the way for a so-called “reparations loan” that would use frozen Russian assets held by Belgian financial institution Euroclear to fund a 140 billion euro ($163.3 billion) loan to Ukraine.
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The EU froze some 200 billion euros ($232.4 billion) of assets in Russia’s central bank after Russia launched a full-scale invasion of Ukraine in 2022. In order to use its assets to finance Ukraine’s war, the European Commission, the EU’s executive arm, developed a complex financial strategy in which the EU would borrow maturing funds from Euroclear.
That money will now be loaned to Ukraine with the understanding that Kiev will only repay it if Russia pays reparations.
The plan would be “fully guaranteed” by the EU’s 27 member states, but if Russia ultimately decides it can recover the assets without paying compensation, member states would have to ensure Euroclear’s repayments themselves. Belgium, where Euroclear is based, opposed the plan on Thursday, with Prime Minister Bart de Weber questioning its legality.
Russia called the proposal an illegal seizure of property and warned of retaliation.
Following Thursday’s political controversy, the document, approved by all leaders except Hungarian Prime Minister Viktor Orbán, was watered down from an earlier draft that called for “financial support options based on an assessment of Ukraine’s financial needs.” These options will be presented to European leaders at their next summit in December.
“Russian assets must remain entrenched until Russia ceases its war of aggression in Ukraine and compensates for the damage caused by the war,” the declaration added.
Earlier, Ukrainian President Volodymyr Zelenskiy, a guest at the summit, had called for early passage of the loan plan.
“Those who delay decisions on the full use of frozen Russian assets will not only limit our defense, but also slow down the EU’s own progress,” he told EU leaders, adding that Kiev would use a significant part of the funds to buy European weapons.
Earlier, the EU also adopted new comprehensive sanctions on Russia’s energy exports on Thursday, banning imports of liquefied natural gas.
The move follows US President Donald Trump’s announcement on Wednesday that Russia’s two biggest oil companies would be subject to US sanctions.
Russian President Vladimir Putin struck a defiant tone Thursday about the sanctions, saying they were an “unfriendly act” and that Russia would not bow to pressure.
