**Brussels** – European Union leaders convened in Brussels on Thursday for a high-stakes summit, facing a critical juncture in their support for Ukraine, with the central focus on unlocking frozen Russian state assets to finance Kyiv's ongoing defence and reconstruction efforts. The bloc's foreign policy chief, Kaja Kallas, underscored the gravity of the moment, stating, "We just can’t afford to fail. We have to show that we are strong." The gathering is poised to decide on a proposal by the European Commission to leverage these immobilised funds to secure a substantial loan for Ukraine, a move that could prove instrumental in sustaining the nation's war footing.
The urgency to forge a financial lifeline for Kyiv stems from a confluence of factors. Russia's protracted invasion, viewed by the EU as an existential threat to its own security, necessitates sustained support for Ukraine. Furthermore, recent pronouncements from influential figures, such as U.S. President Donald Trump, have amplified the pressure on European nations to demonstrate unwavering resolve and self-reliance in the face of geopolitical instability. Polish Prime Minister Donald Tusk articulated the stark choice confronting the leaders, asserting, "Now we have a simple choice – either money today or blood tomorrow." This sentiment highlights the perceived immediate and long-term consequences of inaction.
At the heart of the proposed solution lies the utilisation of Russian central bank assets, predominantly held within a clearing house in Belgium. The European Commission's plan envisages these frozen assets serving as collateral for a loan that would then be channelled to Ukraine. This intricate financial mechanism is intended to provide Kyiv with the necessary resources to continue repelling Russian aggression and to commence the monumental task of rebuilding infrastructure devastated by the conflict. The discussions have delved into increasingly technical aspects of the financial architecture required to implement such a scheme securely and effectively.
However, the path to an agreement is not without its obstacles. Several member states, including Belgium and Italy, have voiced apprehensions regarding the potential legal ramifications and financial risks associated with repurposing sovereign assets. Navigating these concerns while maintaining a unified front presents a significant diplomatic challenge for the summit. The duration of the discussions was anticipated to extend, with leaders indicating a readiness to remain in session "as long as needed" to achieve a consensus.
The outcome of this summit is widely regarded as a significant barometer of the EU's capacity to act decisively in a crisis. A failure to reach a viable solution could not only undermine the bloc's credibility on the international stage but also jeopardise Ukraine's ability to sustain its defence. Conversely, a successful agreement would represent a powerful demonstration of European solidarity and a tangible commitment to Ukraine's sovereignty and future. Beyond the immediate military implications, the financial support is also crucial for the long-term reconstruction of a nation bearing the brunt of a brutal war, addressing what has been destroyed by relentless Russian attacks and fostering stability across the continent.