EU Fails to Reach Agreement on Using Frozen Russian Assets to Fund Ukraine Aid

October 23, 2025 - EU leaders failed to agree on a plan to use frozen Russian assets to finance new loans for Ukraine during a European Council summit in Brussels. While reaffirming their political, economic, and military support for Kyiv, the summit's conclusions contained significantly softer wording than earlier drafts and did not endorse a specific funding mechanism, merely inviting the European Commission to present options for financial support based on an assessment of Ukraine's needs, with the issue to be revisited in December.

The dispute centers on a "reparation loan" proposal of around €140 billion outlined by European Commission President Ursula von der Leyen, which is backed by Germany, France, and the Baltic States. However, Belgium and the European Central Bank oppose the plan, warning it could breach international law and threaten eurozone financial stability. Belgian Prime Minister Bart De Wever stated he would block the plan unless other EU members agreed to share the financial risks equally, provide guarantees if frozen assets must be returned to Moscow, and ensure all countries holding Russian funds act together.