EU prepares decision on $165 billion for Ukraine: will Russian assets get the green light?

Discussions on financing reparations loan to Ukraine

According to ХВИЛЯ: The European Union is actively discussing the possibility of using frozen Russian assets to finance a reparations loan to Ukraine amounting to €165 billion. CEO of Euroclear, Valerie Urban, expressed her concerns about the risks that may arise from this action. She noted that

it's more advisable to keep these funds as a pressure instrument in future peace negotiations

- this underscores the complexity of the situation, as the issue of financing Ukraine remains relevant, especially considering the forecast of depletion of the country's financial resources as early as spring 2026.

Positions of European leaders

Belgian Prime Minister Bart De Wever also expressed his reservations, demanding guarantees of financial coverage before launching the reparations mechanism. He noted that

the launch of the reparations mechanism could provoke a Russian response

, which raises additional concerns among European leaders. The expected date for the EU leaders' summit, where these issues may be discussed, is set for two weeks after December 5, 2025, when Urban's interview took place.

Additionally, it is worth noting that the EU has reduced its loan plan for Ukraine to $105 billion, raising questions about the effectiveness of aid and financial support. A European Commission representative stated that the new scheme takes into account the concerns of Brussels and Euroclear, but the details remain unclear. In the context of these discussions, German Chancellor Friedrich Merz is also an important participant in the process, as Germany occupies a key position on issues of financing and supporting Ukraine.

In the current situation, the issue of financing Ukraine through frozen Russian assets is causing significant disputes among European leaders who are trying to balance Ukraine's needs with the potential negative consequences for international relations. While the necessity for support of Ukraine remains high, the risks associated with the use of Russian assets add complexity to an already difficult situation. The continuation of discussions at the upcoming EU summit could determine the next steps on this issue.