Brussels: The European Union is actively exploring funding options for Ukraine, with a focus on leveraging the 176 billion euros in frozen Russian assets currently held within the bloc. This move comes as the EU seeks to secure a position at the negotiating table concerning the settlement of the Ukraine war.
According to Radio Free Europe Radio Liberty, the EU was largely bypassed when the United States presented a peace plan, which was later refined in discussions with Ukrainian diplomats in Geneva.
European Commission President Ursula von der Leyen has outlined three funding options to provide an estimated 140 billion euros to Kyiv over the next two years. The proposals include direct contributions from individual member states, raising funds on financial markets, and a reparations loan using frozen Russian sovereign wealth assets. The third option is gaining traction as it would not directly impact EU taxpayers. However, Belgium, where most of these assets are frozen, opposes the move citing potential l
egal repercussions from Moscow. The European Commission is working on several legal acts to secure political backing for the reparations loan, aiming for a decision at the upcoming EU summit in Brussels.
Belgium’s concerns are echoed in a letter from Belgian Prime Minister Bart De Wever to von der Leyen, highlighting the unprecedented nature of repurposing immobilized sovereign assets during an ongoing conflict. The European Commission believes an agreement is possible if EU member states provide legally binding guarantees based on their gross national income. The EU hopes for cooperation from non-EU G7 countries and seeks to maintain U.S. support for rolling over sanctions against Russia, which include the frozen assets.
Simultaneously, the Organization for Security and Cooperation (OSCE) prepares for its ministerial meeting in Vienna, expected to draw up to 40 foreign ministers from 57 member states. Notably, U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergei Lavrov will not attend. L
avrov’s absence is attributed to Russia’s strategic focus on India, while the U.S. seeks to reduce OSCE’s budget and implement organizational reforms. Switzerland, set to chair the OSCE in 2026, has struggled to secure unanimity for a new budget, highlighting ongoing challenges within the organization.
The OSCE meeting coincides with NATO’s gathering in Brussels, where discussions will center on military aid to Ukraine and future relations with Russia. As international negotiations continue, the EU’s potential reparations loan remains a pivotal issue in securing financial support for Ukraine amidst the geopolitical complexities of the ongoing conflict.