Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
European Union leaders convened in Brussels on Thursday, October 23, 2025, agreeing to commit to Ukraine’s “pressing financial needs” for the next two years. However, a proposal to fund a substantial €140 billion loan to Kyiv using frozen Russian assets faced a significant roadblock due to concerns raised by Belgium regarding its legality and risk-sharing implications.
Stalled ‘Reparation Loan’ Plan
The summit aimed to secure a swift endorsement of the concept for a ‘reparation loan,’ which would leverage Russian assets to provide crucial financial support to Ukraine. Many EU governments had hoped for a mandate to the European Commission to develop a formal legal proposal in the coming weeks.
Despite these aspirations, the final declaration, supported by all leaders except Hungarian Prime Minister Viktor Orban, was softened. It now requests the Commission to explore “options for financial support based on an assessment of Ukraine’s financing needs” rather than explicitly endorsing the loan mechanism.
The declaration emphasized that Russia’s assets should remain immobilized until the country ceases its aggression against Ukraine and provides compensation for damages. EU leaders are now targeting a deal on the financing mechanism by December.
Belgium’s Reservations and Euroclear’s Role
Belgium’s concerns proved pivotal, largely because the financial institution Euroclear, based in Belgium, holds a significant portion of the frozen Russian assets. Belgian Prime Minister Bart De Wever articulated strong reservations, stating he would only support the plan with clear assurances of its legality and a commitment from other EU nations to share the associated risks.
De Wever called for all EU members to contribute to the costs of any potential legal actions initiated by Russia and to share financial responsibility if the funds ever needed to be repaid. He also advocated for frozen Russian assets held in other countries to be included in any such scheme, highlighting the need to resolve the unclear legality of the “reparation loan” plan.
Zelenskiy’s Urgent Appeal
Ukrainian President Volodymyr Zelenskiy, attending the summit, urged EU leaders to quickly approve the loan proposal. He argued that delaying the decision on the full use of frozen Russian assets not only hinders Ukraine’s defense but also impedes the EU’s own progress.
Zelenskiy indicated that a substantial portion of the funds would be utilized to acquire European weapons and strengthen Ukraine’s air defense, air fleet, and frontline positions. He emphasized that such immediate financial support would be instrumental in saving lives.
Path Forward
Despite the current impasse, European Commission President Ursula von der Leyen and European Council President Antonio Costa expressed optimism about reaching a resolution. They maintained that technical issues surrounding the reparation loan plan are solvable, indicating the feasibility of the solution.
Russia has consistently condemned the idea of using its frozen assets as an illegal seizure of property and has issued warnings of potential retaliation.
