European Union leaders are gathering for a Brussels summit where a momentous decision will be taken on whether to loan Ukraine tens of billions of euros in frozen Russian assets to fund its military and economic needs.
Most of Russia’s €210bn (£185bn; $245bn) worth of assets in the EU are held by Belgium-based organisation Euroclear, and so far Belgium and some other members of the bloc have said they are opposed to using the cash.
Without a boost in funding, Ukraine’s finances are set to run dry in a matter of months.
One European government official described being “cautiously optimistic, not overly optimistic” that a deal would be agreed. Russia has warned the EU against using its money.
It has filed a lawsuit against Euroclear in a Moscow court in a bid to get its money back.
The Brussels summit comes at a pivotal moment in the war and and all eyes are on Belgian Prime Minister Bart De Wever, who told the Belgian parliament on Thursday: “I haven’t yet seen any text that would persuade me to change Belgium’s position”.
US President Donald Trump has said a deal is closer than ever to end the war – which began with Russia’s full-scale invasion of Ukraine in February 2022.
US and Russian officials are due to meet in Miami this weekend for further talks on a peace plan, a White House official told the AFP news agency. It is thought Kremlin envoy Kirill Dmitriev will talk to Trump envoys Steve Witkoff and Jared Kushner.
Ukrainian officials are also heading to the US, and President Volodymyr Zelensky, who is in Brussels, has told reporters that if Russia does not comply with US demands to end the war “in the near future, Ukraine will certainly need to be strengthened”.
Russia has not yet responded to the latest peace proposals, but the Kremlin has stressed that plans for a European-led multinational force for Ukraine supported by the US would not be acceptable.
President Vladimir Putin made his feelings towards Europe clear on Wednesday, when he said the continent was in a state of “total degradation” and that “European piglets” – a derogatory description of Ukraine’s European allies – were hoping to profit from Russia’s collapse.
The European Commission – the EU’s executive arm – has proposed loaning Kyiv about €90bn (£79bn) over the next two years – out of the €210bn of Russian assets sitting in Europe.
That is about two-thirds of the €137bn that Kyiv is thought to need to get through 2026 and 2027. (BBC)
