On Thursday night, leaders from the EU reached a consensus to assist Ukraine with its “financial requirements” over the forthcoming two years – yet refrained from unlocking billions in frozen Russian assets to aid the country’s defense efforts.
The choice to utilize €140bn (£122bn) in Russian funds held in a Belgian clearing house has been delayed until December due to concerns raised by Belgium.
This contentious action would supplement the sanctions the bloc has enacted against Russia – the latest measures on Thursday focusing on the Kremlin’s oil income.
The Brussels assembly took place prior to a London summit on Friday, where Prime Minister Sir Keir Starmer will urge European leaders to enhance long-range missile provisions for Kyiv.
Ukrainian President Volodymyr Zelensky is expected to participate in the “coalition of the willing” meeting, alongside Nato Secretary General Mark Rutte, Danish Prime Minister Mette Frederiksen, and Dutch official Dick Schoof. Other leaders, including French President Emmanuel Macron, will join the discussions virtually.
On Thursday, European ministers engaged in discussions in Brussels regarding how billions of euros in frozen Russian assets might be made accessible to Ukraine as a so-called “reparations loan”.
Numerous EU countries had anticipated that the leaders would endorse the initiative and direct the European Commission, the EU’s executive arm, to formulate a formal legal proposal in the weeks ahead.
However, the concluding statement, agreed upon after extensive discussions, did not authorize these plans. Instead, it requested the Commission to explore “financial support options based on an evaluation of Ukraine’s funding necessities”.
“Russian assets should remain frozen until Russia terminates its aggressive actions against Ukraine and compensates for the damage inflicted by its war,” the statement emphasized.
The objective now is for EU leaders to finalize an agreement in December.
“This is certainly not a simple matter. It’s quite intricate,” remarked European Commission President Ursula von der Leyen following the summit. “It was also clear that there are certain issues that need clarification.”
European Council President Antonio Costa expressed optimism, stating that the bloc had “committed to ensure that Ukraine’s financial requirements are met for the next two years”.
“Russia should take note of this: Ukraine will possess the financial means necessary for its defense,” he stated at a news briefing.
Zelensky, who attended the summit in Brussels, regarded the outcome as a demonstration of “political support” for the concept of utilizing Russian assets to sustain Kyiv’s efforts.
Several legal complications accompany the utilization of Russia’s funds.
Belgium, in particular, has hesitated to endorse the use of the frozen assets, fearing potential repercussions if Russia were to legally challenge Euroclear, the clearing house housing the funds.
Belgian Prime Minister Bart De Wever stated that his nation needed firm and substantial assurances before backing the proposal, stressing that the initiative represented “uncharted territory”.
The Belgian government has contended that it could expose Euroclear to legal battles and ultimately precipitate a major financial crisis.
“Is this (plan) legally viable? That’s a very valid question … There are no definitive answers,” De Wever remarked.
“In any case, we will find ourselves entangled in lawsuits. That appears to be a certainty.”
Russia has criticized the European Union’s proposals.
“Any confiscatory actions from Brussels will inevitably provoke a substantial counter-response,” declared Russian foreign ministry spokesperson Maria Zakharova.
The European Union’s latest sanctions followed U.S. actions against Russia’s oil sector – marking the first time Donald Trump has imposed sanctions on Moscow amid his growing frustration over Vladimir Putin’s unwillingness to halt the conflict.
After the announcement of the U.S. sanctions on Wednesday evening, Trump confirmed that a previously scheduled meeting with the Russian president in Budapest had been indefinitely postponed.
“Whenever I discuss matters with Vladimir, I have productive conversations, yet they lead nowhere,” he stated.
The U.S. sanctions targeted Russia’s oil giants Rosneft and Lukoil. In response, Putin asserted that the “hostile” U.S. actions “will have certain ramifications, though they will not significantly impact our economic stability”.
Oil constitutes one of Russia’s primary exports. Ukraine aims to employ long-range missiles to strike Russian oil and energy facilities.
Zelensky had sought to obtain Tomahawk cruise missiles from the U.S., but Trump declined the request last week, citing that the weapons are “highly complex” and require a year of rigorous training for operation.
The latest punitive steps from the EU against Russia impacted three Chinese companies, including two oil refineries and an energy trader identified as “notable purchasers of Russian crude oil”.
These measures are “intended to deprive Russia of resources to finance this war,” Kallas stated, further conveying that the aim is to send a message, particularly that “Russia cannot outlast us,” she indicated.
China condemned the decision, which a spokesperson from the commerce ministry stated “seriously undermined the overall framework of China–EU economic and trade collaboration”.
