World

EU Leaders Pledge to Secure Ukraine’s Funding Through 2027: What’s Next?

EU leaders pledged to address Ukraine‘s financial needs for 2026-2027, supporting Kyiv amid the ongoing conflict.

byAndres Castro

October 24, 2025, 8:49 AM

A row of European Union flags waving in front of the European Parliament building.

EU flags wave in front of the European Parliament building. By MDL.

Executive Summary

EU leaders have committed to addressing Ukraine’s financial needs for 2026-2027, covering both civilian and military purposes.

A specific proposal for a €140 billion loan to Ukraine, leveraging frozen Russian assets, was discussed but not explicitly included in the approved draft text, facing reservations from Belgium regarding associated risks.

The European Commission is tasked with presenting various options for meeting Ukraine’s financing requirements for the next two years, to be considered at the December EU summit.

The Story So Far

The European Union is committed to providing ongoing financial support to Ukraine due to the persistent conflict, necessitating substantial funding for both civilian and military purposes. A key strategy under consideration involves utilizing frozen Russian assets, with a proposed €140 billion loan, though this approach faces legal and financial concerns from member states like Belgium, who demand shared risk and the development of robust legal mechanisms.

Why This Matters

The EU’s commitment to address Ukraine’s financial needs through 2027, covering both civilian and military support, signals a significant, long-term strategic investment in Kyiv’s stability and defense capabilities. However, this pledge also highlights ongoing internal complexities, particularly the challenge of developing legal mechanisms to utilize frozen Russian assets and the need for member states to agree on shared financial and retaliatory risks, with specific funding options to be finalized by December.

Who Thinks What?

EU leaders have committed to addressing Ukraine’s financial needs for 2026-2027, encompassing both civilian and military purposes, and have invited the European Commission to present various financing options.

Belgian Prime Minister Bart De Wever expressed reservations about a €140 billion loan proposal leveraging frozen Russian assets, fearing retaliation from Moscow and insisting on shared legal and financial risks among member states.

The EU is actively developing legal mechanisms to fully utilize frozen Russian assets to secure vital funding for Ukraine and address concerns raised by member states.

EU leaders have committed to addressing Ukraine’s financial needs for 2026-2027, according to a draft text approved at a European Council summit in Brussels on Thursday. The commitment, reported by Reuters, underscores the bloc’s continued support for Kyiv amid ongoing conflict, with financing intended for both civilian and military purposes.

Addressing Ukraine’s Financial Future

A specific proposal, backed by Belgium, involved a €140 billion loan to Ukraine, leveraging frozen Russian assets. However, the approved draft text did not explicitly mention this particular proposal.

Belgian Prime Minister Bart De Wever had previously expressed reservations about the loan, fearing retaliation from Moscow. He insisted on other member states sharing the associated legal and financial risks before fully endorsing the plan.

In response, the EU had earlier stated its efforts to develop legal mechanisms to fully utilize the frozen Russian assets. This initiative aims to address Belgium’s concerns while securing vital funding for Ukraine.

Next Steps and Broad Commitment

The draft conclusions from the summit invite the European Commission to present various options for meeting Ukraine’s financing requirements for the next two years. These options are slated for consideration at the subsequent EU summit, scheduled for December.

António Costa, President of the European Council, affirmed the EU’s unwavering commitment to supporting Ukraine’s financing needs through 2027, encompassing both military and defense expenditures. Politico noted that leaders from 26 countries agreed to the draft during the talks, with Hungary choosing not to participate in the meeting.

Sustained Support

The EU’s pledge reinforces its long-term strategy to provide financial stability and defense capabilities to Ukraine, navigating complex legal and political considerations related to asset utilization and shared risk among member states.