Despite a challenging confrontation with Belgium regarding a loan to Ukraine sourced from frozen Russian assets, the proposal remains alive.
This was stated by European Commission President Ursula von der Leyen at a press conference following the EU summit in Brussels on Thursday.
“The European Commission will continue to explore the possibility of a replacement loan to Ukraine derived from the frozen Russian assets,” said von der Leyen.
The “final decision” on the loan will be made at the EU summit in December, according to EU President António Costa.
“No one vetoed anything today. We made an important decision to financially support Ukraine in 2026 and 2027,” Costa noted.
“Various leaders raised technical questions that need to be addressed, and we will reach a final decision at the December summit,” he added.
This announcement follows extended discussions among EU leaders, which unexpectedly concluded with the loan reference being removed from the summit’s conclusions at the last minute.
However, von der Leyen emphasized that the loan has not been abandoned.
“We had a productive discussion about the replacement loan, clarifying conditions that need further examination,” she stated.
“We have agreement on the need for the replacement loan, but not on the structure of it,” von der Leyen explained.
The proposed loan of 140 billion euros was intended, according to the European Commission, to sustain Ukraine through the next two years of the conflict.
Belgium’s Prime Minister Bart De Wever raised significant concerns over the plan.
Belgium is crucial to the issue as the 140 billion is frozen in the Belgian securities settlement Euroclear.
De Wever demands solid assurances that Belgium will not be held liable if the plan fails, suggesting there is a high risk involved.
“There is a substantial risk. We could face enormous compensation claims,” Bart De Wever stated.
He also warned that Russia could declare Belgian and other European firms bankrupt and seize them.
“EU leaders must understand that if we take Putin’s money, he will retaliate against our assets,” De Wever cautioned.
“European companies could be taken over in Russia. Western funds frozen there may be seized, and friendly countries to Russia could follow suit,” he added.
Von der Leyen is now tasked with addressing the concerns raised by the Belgian Prime Minister.
“It is also essential to emphasize that we will adhere to European legislation in this initiative,” she affirmed.
Consequently, the EU is deferring the decision until the deadline approaches.
Ukraine’s President, Volodymyr Zelenskyy, indicated at the summit that timely disbursement of funds is critical:
“Ukraine needs the money in 2026, ideally at the beginning of the year,” Zelenskyy emphasized.
A senior EU official stated earlier in October that Ukraine would deplete its funds by the end of the first quarter of 2026, risking an “economic collapse” that would pose a “security threat” to all of Europe if the EU does not intervene.
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