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European leaders are set to reaffirm their unwavering support for Ukrainian President Volodymyr Zelenskiy during a key summit in Brussels on Thursday, following a turbulent week marked by U.S. President Donald Trump’s on-again, off-again plans to meet Russian President Vladimir Putin.
At the summit, the European Union (EU) aims to strengthen ties with Kyiv by restating its commitment to Ukraine’s territorial integrity and advancing discussions on using frozen Russian assets to provide a massive “reparation loan” to Ukraine. The proposed €140 billion ($163 billion) financial package would utilize funds from frozen Russian central bank securities to support Ukraine’s defense and budget needs through 2026 and 2027.
The initiative, spearheaded by the European Commission, faces resistance from Belgium, which holds the assets through Euroclear, over potential legal and financial risks. EU governments remain divided over how the loan should be used — some advocate directing funds exclusively toward European-made weapons, while others believe Kyiv should have the flexibility to purchase arms from the United States or allocate part of the funds for general budget support.
A senior Ukrainian official stressed the urgency of receiving the funds by year’s end and the need for autonomy in spending decisions. The European Commission has proposed a compromise allowing most of the loan to fund Ukrainian and European arms while reserving a smaller share for broader financial needs.
In addition to financial aid, Ukraine will receive further backing through the EU’s 19th sanctions package against Russia, which includes a ban on Russian liquefied natural gas starting January 2027 and measures targeting the shadow tanker fleet and Chinese oil refineries.
Russia has condemned the loan proposal as an unlawful seizure of its assets, warning of potential retaliation.
