Europe Asia News

Speaking in the European Parliament on the eve of the summit, European Commission President Ursula von der Leyen said, “There is no more important European defense action than supporting Ukraine’s defense,” adding, “The coming days will be crucial to ensure this.”

Earlier this month, von der Leyen proposed two options to finance Ukraine’s urgent defense and civilian needs in 2026 and 2027: joint EU borrowing or a “compensation loan” secured against Russia’s frozen assets in the bloc.

Belgium, which hosts most of the EU’s €210 billion (£185 billion) in frozen Russian assets, says it lacks sufficient assurances that member states would step in if the plan fails, potentially leaving Brussels facing a bill of billions of euros.

Russia’s central bank announced this week that it would file a $230 billion compensation lawsuit against Brussels-based securities depository Euroclear, which holds most of Russia’s sovereign assets in the EU. Belgium also fears that courts in Russia and allied countries could seek to seize Western assets to enforce claims against Euroclear.

German Chancellor Friedrich Merz said on Tuesday in an interview with public television that he would continue the fight to make up to €90 billion (£79 billion) in Russian assets “available for Ukraine’s defense,” describing the chances of reaching an agreement as “50/50.”

The EU last week used emergency powers to freeze €210 billion in Russian assets in the bloc indefinitely, removing the risk of losing control of the funds should Hungary or any pro-Kremlin government veto the renewal of sanctions that must be extended every six months.

Belgium has also suggested that such emergency powers could be used to create an EU loan backed by the budget, bypassing the requirement for unanimity. Other countries, however, say this would represent too great a legal departure. “This is unacceptable,” said a senior EU diplomat, while adding that he nevertheless sympathizes with Belgium’s position.