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European Union leaders have gathered in the Belgian capital for end-of-year discussions with a pivotal decision regarding the use of immobilized Russian Federation funds to boost the Ukrainian defense against Moscow.

“There is a clear choice: either funds now, or else bloodshed in the future,” stated Poland’s Prime Minister Donald Tusk. “I’m not talking about Ukraine only, this concerns the entire continent.”

The 27-member union is working urgently to fortify Ukraine's position while ex-American leader Donald Trump pushes for a quick deal to end the fighting as the invasion drags towards the four-year mark.

The Financial Crisis and the Controversial Plan

The EU estimates Ukraine needs an extra €135bn ($159bn) to remain solvent over the 2026 and 2027, with the funding shortfall expected to begin in April. To plug this hole, the EU's executive arm has proposed a plan to access some €210bn of Moscow's state assets frozen within the European Union.

German Chancellor Friedrich Merz argued the assets plan was essential to increase pressure on Vladimir Putin and send “a strong signal to Russia.”

A Split Bloc: Resistance and Legal Concerns

However, a significant group of dissenters, led by Belgium—the home of the clearing house Euroclear, which custodies the majority of the frozen funds—is voicing questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.

From a procedural standpoint, this group may not be sufficient to block the proposal should a vote be held under qualified majority procedures. But in practical political terms, it makes the process very awkward for everyone involved.

There remains little indication of a middle ground, as the only other pathway—relying on European Union debt—would need unanimity, and would likely be blocked by Hungary, which flatly denies providing any further help for Kyiv.

Leaders’ Comments Ahead of the Negotiations

European leaders have insisted that the summit discussions will continue as long as it takes to reach an consensus, cautioning that Ukraine’s survival and Europe’s credibility are on the line.

• Ursula von der Leyen, the head of the EU executive, declared she would not depart from the meeting until an agreement is concluded.
• In contrast, Slovak leader Robert Fico reportedly joked that they can keep him there until the new year, and he still wouldn’t back it.
• Ukrainian leader Volodymyr Zelenskyy is scheduled to participate in the meeting in a final effort to persuade the critics.

Strong Opposition from Budapest

The Hungarian Prime Minister Viktor Orbán was uncompromising, labeling the proposition of utilizing frozen assets “stupid” and equivalent to “marching into the conflict.” He voiced support for Belgium’s wary stance.

Appeals for Unity and a Solution

Other leaders stressed the urgency for a resolution.

• António Costa, European Council president, vowed: “Negotiations will continue on the issue today, if it’s necessary tomorrow, but we will not depart from the Council without a conclusive agreement.”
• Kaja Kallas, the EU’s top diplomat, commented that work to allay Belgium’s worries and distribute the risk fairly were ongoing. She estimated the odds of a successful outcome at “50/50.”
• Micheál Martin, Ireland’s Taoiseach, said his country was “strongly in support” of using the immobilised assets.

The scene is prepared for a possibly long and strained negotiation in Brussels, with the fate of significant financial support for a nation at war resting in the balance.