• EU leaders are deciding on financing Ukraine using frozen Russian assets worth €210 billion.
• Belgium's approval is crucial as most frozen assets are held by Euroclear, a Belgian institution.
• Current options include a potential loan based on these assets to support Ukraine through 2026 and 2027.
• Ukrainian President Zelensky emphasizes the moral and legal justification for using these funds.
• Russian officials have threatened legal action against the EU regarding the frozen assets.

European Union leaders are engaged in critical discussions in Brussels regarding a proposal to finance Ukraine using approximately €210 billion ($246 billion) of frozen Russian assets, which are primarily held by Euroclear, a Belgian financial institution. The urgency of this matter is underscored by fears that, without additional funding, Ukraine could run out of money by April 2026. EU officials see this financing as vital not only for Ukraine’s defense but also for maintaining European security amidst the ongoing conflict with Russia, especially following U.S. financial support reductions, according to BBC, Reuters, and Le Monde.

Belgium's Prime Minister Bart De Wever has expressed significant concerns regarding the legal repercussions of using these assets, fearing that Belgium could face financial liabilities should Russia successfully challenge the legality of such actions in international courts. De Wever has stated that he requires binding guarantees from other EU member states to cover any potential liabilities, which complicates negotiations as many countries are hesitant to provide indefinite financial assurances. Germany and other nations have voiced readiness to support the loan initiative, but concerns from Belgium remain paramount, according to Al Jazeera, and Le Monde.

Ukrainian President Volodymyr Zelensky has urged EU leaders to proceed with the plan, citing both moral and legal justifications for utilizing the frozen Russian assets to bolster Kyiv's defense capabilities against ongoing aggression. Zelensky indicated that the plan, which involves a repayment mechanism dependent on potential reparations from Russia, is essential for maintaining Ukraine's sovereignty and stability while negotiations for peace continue. He emphasized the need for a decision by the end of the year to keep Ukraine funded, given the projected cash crunch in early 2026, according to BBC and Reuters.

The EU's deliberations come at a critical juncture, as the bloc seeks to present a united front amid rising tensions. However, Hungary's opposition to the financing proposal complicates matters, as Hungary's Prime Minister Viktor Orban has indicated he would veto moves that require unanimity among EU members. This situation has created a sense of urgency, as EU leaders are determined to find a resolution that doesn’t compromise Belgium's concerns while still addressing the immediate financial needs of Ukraine, according to Le Monde and Al Jazeera.