Europe’s risky decision: Using frozen russian assets to support Ukraine

Pars Today — Europe’s plan to use frozen Russian assets to fund Ukraine faces internal opposition and legal concerns.

The European Union’s proposal to use frozen Russian assets to finance Ukraine has met internal opposition and legal concerns at the Brussels summit.

As EU leaders discuss raising €90 billion for Ukraine over the next two years, the controversial plan to use blocked Russian assets—dubbed a “compensation loan”—has faced resistance from countries like Belgium. At the same time, fears of reduced US support are testing the EU’s unity.

The EU aims to design a mechanism to provide an interest-free loan to finance Ukraine in 2026 and 2027, drawing on around €210 billion of frozen assets from the Russian central bank. The so-called “compensation loan” is intended to stabilize Ukraine’s finances while increasing pressure on Moscow.

However, serious objections have emerged, particularly from Belgium, where much of the frozen assets are held at the Euroclear depository. Belgium is concerned about legal repercussions and potential Russian retaliatory actions and is seeking sufficient guarantees for sharing potential costs among EU members.

On the other hand, Germany and Poland are strong supporters of the plan, while Luxembourg has emphasized the need for Europe to rely on itself amid declining US support.

These disagreements come as European leaders try to balance unity against Russia, ensure Ukraine’s financial security, manage legal risks, and maintain the credibility of European markets. The outcome of the Brussels summit on Thursday, December 18, 2025, will affect not only Ukraine’s future but also the EU’s standing as an independent actor on the international stage.