EU leaders urged to use frozen Russian assets to fund Ukraine's defence

"European leaders are being urged to decide whether to use Russia's frozen assets to fund Ukraine's defence at a time of unprecedented pressure from the US. At a critical summit in Brussels on Thursday, EU leaders will be asked to make good on a promise to find urgently needed cash for Ukraine, with Kyiv under pressure to cede territory as Russia ekes out advances on the battlefield."

"Speaking in the European parliament on the eve of the summit, the European Commission president, Ursula von der Leyen, said: There is no more important act of European defence than supporting Ukraine's defence. She added that the next days will be crucial in securing this. Von der Leyen said Europe must take responsibility for its own security in a world she described as dangerous and transactional, adding: This is no longer an option. It is a must."

"Belgium, which hosts most of the 210bn (185bn) immobilised Russian assets in the EU, says it lacks sufficient guarantees that member states would come to its aid if the scheme were to fail, leaving Brussels with a multibillion-euro bill. The Russian central bank announced this week that it was seeking $230bn (202bn) in damages against Euroclear, the Brussels-based securities depository that holds most of Russia's sovereign wealth in the EU. Belgium also fears courts in countries allied to Russia will move to seize western assets to enforce claims against Euroclear."

EU leaders face a decision on using Russia's frozen assets or joint EU borrowing to fund Ukraine's defence and civilian needs in 2026 and 2027. Ursula von der Leyen framed support for Ukraine as a vital act of European defence and called for Europe to take responsibility for its own security. Belgium hosts most immobilised Russian assets and seeks guarantees against financial liability and legal claims, while the Russian central bank is pursuing large damages against Euroclear. Italy warns that using frozen assets without solid legal basis would benefit Moscow and favors joint EU borrowing as a safer option.

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