The European Union is poised to approve, in principle, a plan to finance Ukraine for the next two years using proceeds from frozen Russian assets, EU Council President Antonio Costa announced on Thursday, October 23.
The move comes amid tense negotiations within the bloc, with Belgium threatening to block the plan unless specific conditions are met regarding the use of the frozen funds to provide Ukraine with a €140 billion ($163.27 billion) loan.
Belgian Prime Minister Bart De Wever outlined three key demands: that all EU members share the legal and financial risks involved, that there be full transparency about the legal basis of the plan, and that frozen Russian assets held outside Belgium be included in the scheme. He warned that if these demands were not met, he would “do everything in my power, politically and legally, to stop this decision.” Belgium plays a crucial role as it holds most of the frozen Russian assets through the securities depository Euroclear.
Despite Belgium’s objections, Costa—arriving at the EU summit alongside Ukrainian President Volodymyr Zelenskiy—stressed that the bloc would ensure Ukraine’s financial stability through 2026 and 2027, including funding for military needs. EU leaders are expected to instruct the European Commission to draft a formal legal framework for the frozen assets plan.
During the summit, the EU reaffirmed its commitment to Ukraine’s sovereignty and territorial integrity. Zelenskiy also received a diplomatic boost as the bloc approved a new sanctions package against Russia, including a ban on Russian liquefied natural gas (LNG) imports starting in January 2027, and fresh measures targeting Russia’s “shadow” oil tanker fleet and two independent Chinese refineries.
The new measures come just a day after the U.S. imposed sanctions on Russia’s major oil firms and postponed a scheduled meeting between President Trump and Vladimir Putin.
Meanwhile, EU members continue to debate how Ukraine should use the proposed funds. Some countries advocate directing the money solely toward purchasing European-made weapons, while others believe Kyiv should have the flexibility to allocate part of it for general budget support or to procure arms globally. Ukrainian officials have stressed the urgent need for funds before the year’s end and insist on autonomy in how the aid is spent.
Russia has condemned the EU’s proposal, denouncing it as an “illegal seizure of property” and warning of retaliatory measures.
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