Economy

EU Summit Tackles “Drone Wall” for Defense and Ukraine Aid: Can Frozen Russian Assets Fuel Kyiv’s War Chest?

EU leaders discuss a “drone wall” and using frozen Russian assets to fund Ukraine aid.

byAndres Castro

October 1, 2025, 10:19 AM

Ukrainian soldiers with drone during a military operation

Ukrainian soldiers use a drone for reconnaissance during a military operation. By MDL.

Executive Summary

EU leaders are deliberating a “drone wall” proposal to enhance continental defense capabilities, prompted by recent drone incursions over European airspace.

A central agenda item is the European Commission’s proposal to utilize 140 billion euros in frozen Russian assets to fund a “Reparation Loan” for Ukraine.

The summit also addresses the EU’s broader defense responsibilities and a proposed 19th package of sanctions against Russia, including phasing out Russian liquefied natural gas imports.

The Story So Far

European Union leaders are convening to address pressing security and financial challenges, driven by recent drone incursions over Denmark and Poland that have exposed vulnerabilities in European airspace, intensifying calls for enhanced continental defense. Simultaneously, with U.S. military aid to Ukraine reportedly dwindling, there is growing pressure on the EU to find alternative funding mechanisms, such as utilizing frozen Russian assets, to bolster Kyiv’s war effort and assume greater responsibility for its own defense, a sentiment echoed by Donald Trump.

Why This Matters

The European Union is poised to significantly bolster its continental defense capabilities, driven by recent drone incursions and external pressure for greater self-reliance, with proposals like a “drone wall” signaling a new era of integrated security infrastructure. Concurrently, the bloc is advancing plans to utilize €140 billion in frozen Russian assets to fund a loan for Ukraine, a move that could provide crucial financial support for Kyiv while also raising complex legal and economic questions about international financial precedents.

Who Thinks What?

European Commission President Ursula von der Leyen, NATO Secretary General Mark Rutte, and several European nations advocate for the “drone wall” proposal, seeing it as a timely and necessary measure to bolster Europe’s defense capabilities against drone incursions.

European Commission President Ursula von der Leyen and German Chancellor Friedrich Merz support using frozen Russian assets to finance a 140 billion euro “Reparation Loan” for Ukraine, viewing it as a decisive action that could mark a “turning point” in the conflict.

Belgian Prime Minister Bart De Wever expresses caution regarding the use of central bank funds from frozen Russian assets, warning that such a precedent could prompt countries to withdraw their reserves from the eurozone.

European Union leaders are convening in Copenhagen on Wednesday, October 2, to deliberate on proposals for a “drone wall” aimed at bolstering continental defense and to discuss utilizing 140 billion euros in frozen Russian assets to fund a loan for Ukraine. The summit follows recent airspace intrusions over Denmark and other European nations, intensifying calls for enhanced security and sustained support for Kyiv amidst Russia’s ongoing invasion.

Continental Defense Initiatives

The “drone wall” proposal, advocated by European Commission President Ursula von der Leyen, envisions a network of sensors and weapons designed to detect, track, and neutralize intruding unmanned aircraft. This discussion is particularly timely, coming days after unidentified drone incursions disrupted air traffic at six Danish airports last week.

In response to these incidents, several European nations, including France, Germany, Sweden, Norway, the Netherlands, Britain, Finland, and Ukraine, have committed troops and anti-drone systems to assist Denmark in protecting the summit leaders. NATO Secretary General Mark Rutte endorsed the “drone wall” concept as “timely and necessary,” highlighting a renewed focus on bolstering Europe’s defense capabilities.

Rutte also emphasized the economic challenge of countering drones, noting the unsustainability of deploying expensive missiles against lower-cost unmanned vehicles. While the European Commission has yet to produce a detailed plan, the initiative was reportedly under consideration prior to recent incursions over Poland.

Frozen Russian Assets for Ukraine

A key agenda item for leaders is the European Commission’s proposal to use Russian assets frozen in Europe to finance a 140 billion euro “Reparation Loan” for Ukraine. This initiative aims to bolster Kyiv’s war effort, especially as U.S.-funded military aid reportedly dwindles.

Commission President von der Leyen stated that decisive action could mark a “turning point” in the conflict. Under the proposed plan, Kyiv would repay the loan if Russia provides war reparations, though European officials acknowledge complex legal and technical questions remain.

While German Chancellor Friedrich Merz voiced support for the general concept, Belgian Prime Minister Bart De Wever expressed caution. He warned that using central bank funds could prompt countries to withdraw their reserves from the eurozone, citing the precedent it might set.

Broader EU Stance

These discussions unfold amid increasing pressure on the EU to assume greater responsibility for its defense and support for Ukraine, a sentiment echoed by President Donald Trump. The summit also provides an opportunity to advance a proposed 19th package of EU sanctions against Russia, which includes phasing out Russian liquefied natural gas imports by early 2027.

Outlook

The Copenhagen summit underscores the EU’s strategic commitment to strengthening its collective security and providing economic assistance to Ukraine. The outcomes are expected to define the bloc’s evolving approach to continental defense and its financial response to the ongoing conflict.