On November 26, 2025, the European Commission announced its readiness to present a legal document for a €140 billion loan to Ukraine, secured by frozen Russian assets. This is an unprecedented proposal, three times larger than the previous G7 agreement.
The final decision on the loan mechanism is expected at the European Council summit on December 18, 2025. However, Belgium and several other countries are blocking the deal without guarantees for risk-sharing.
Frozen Russian assets are funds that were held in foreign financial institutions, mainly in the EU. The largest portion—about €185 billion—is kept in the Belgian company Euroclear. Significant amounts are also frozen in France, Luxembourg, Switzerland, the USA, and Japan.
The EU is considering several options for financing Ukraine: voluntary bilateral contributions, joint EU debt, and a reparations loan secured by frozen Russian assets. The latter is the European Commission’s priority.
Currently, profits from these frozen assets are already being used to support Ukraine. Under a European Council decision, part of the interest is sent to military assistance and recovery. However, these funds cover only a part of Ukraine's needs.
The main legal issues concern sovereign immunity, the temporary nature of measures, and the lack of precedent for confiscating state assets. There are also risks of negative responses from other countries and potential lawsuits against Belgium.
Major EU countries like Belgium and Germany are cautious about full confiscation, while Poland, the Baltic, and Scandinavian countries favor it. The final decision requires the consent of all EU members, but Hungary and Slovakia are currently blocking the position.
If the main plan is blocked, the EU is considering an interim loan via joint borrowing. The outcome of all options depends on political will and legal decisions at the European level.
The full confiscation of Russian assets remains a legally and politically complex issue. The European Commission is seeking a solution that will enable effective support for Ukraine without setting a negative international precedent.
