The European Union is close to sealing a landmark agreement to use frozen Russian assets to fund Ukraine’s defence in 2026 and 2027, EU summit chairman Antonio Costa said on Tuesday, signalling that negotiations are in their final stretch ahead of a decisive December summit.
Speaking in Dublin, Costa said EU leaders are “very close to obtaining a solution” after weeks of technical and legal fine-tuning. The proposal will be tabled at the European Council summit on December 18, although discussions may extend to December 19 or 20 if necessary to secure a qualified majority.
At the centre of the plan is roughly €210 billion in Russian sovereign assets immobilised across Europe following Moscow’s 2022 invasion. The European Commission wants to raise up to €165 billion for Ukraine through a Reparations Loan, asking EU institutions holding the assets to swap them for triple-A-rated EU bonds. The funds would then be disbursed to Kyiv in stages over the next two years.
Belgium home to the largest share of the frozen assets has demanded guarantees from other EU member states to protect against financial fallout if Russia challenges the arrangement in court. Negotiations on these guarantees are expected to conclude during the upcoming summit.
To minimise the risk of Russian retaliation, Belgium is also pushing for G7 participation. The UK has already expressed readiness to work with the EU, with British Prime Minister Keir Starmer confirming that London could mobilise about £8 billion in assets. Canada is studying similar measures, while Japan has left its options open, signalling no opposition to using frozen Russian assets to support Ukraine.
EU officials argue the move is crucial for European security, noting that maintaining Ukraine’s military strength helps deter potential Russian aggression against EU territory. The financing would also buy Europe time to reinforce its own defence capabilities.
The December summit is expected to deliver the final framework, potentially creating a global precedent for deploying immobilised foreign assets to support nations under attack while distributing legal and financial risks among allies.
Erizia Rubyjeana
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