EU prepares for crucial summit on Ukraine funding: Politico learns details and pitfalls

European leaders will gather in Brussels on December 18 for the last EU summit of 2025. The stakes are higher than ever: a solution must be found for “difficult proposals so that Ukraine does not run out of money in the middle of next year,” Politico reports, writes UNN.

DetailsUkraine’s allies, as stated, hope to avoid a repeat of the October event in the EU, when Belgium objected to plans to use a colossal 140 billion euros of frozen Russian assets to provide a “reparations loan,” citing legal concerns. Diplomats have since, the publication writes, “resented the European Commission for not addressing the concerns in advance.”

In a letter on Monday, European Commission President Ursula von der Leyen warned EU capitals that the alternative to this step was expensive national or European borrowing, and urged them to agree on further action.

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“It is now very important to quickly reach a clear agreement on how to ensure the necessary funding for Ukraine is agreed at the next European Council meeting in December,” von der Leyen wrote. “Moving this process forward will allow us to continue to put pressure on Russia, deprive it of hope for victory, and lay the groundwork for an end to hostilities and long-awaited peace talks.”

“The Danish presidency of the EU Council and other partners will have to try to conclude a deal before next month’s summit,” the publication writes.

“If you want to have a decision at the European Council meeting, then we [the EU] need to do our homework now,” a senior Belgian official said.

This country holds the vast majority of frozen Russian funds and is concerned about both lawsuits and retaliatory measures from Moscow; it wants the EU to share the risks equally. However, the official said, while “everyone wants a solution” and “to avoid a repeat” of the October stalemate, “we will not approve it until we know in detail what it is about.”

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“This is not just about Belgium: other countries are increasingly criticizing Berlaymont’s (European Commission headquarters – ed.) inability to present a concrete proposal, instead focusing on trying to convince them that the plan for Russian assets is the best of many failed options,” the publication says.

“There is no realistic option here other than using frozen assets,” said one diplomat from a Central European country. “The European Commission must stop wasting time and provide member states with more detailed information on the proposals so that they know what they are supporting.”

Ukraine’s Ambassador to the EU Vsevolod Chentsov said that “a faster agreement on a reparations loan is crucial” and will provide predictable funding from early 2026 without additional costs for taxpayers. “The EU’s participation is critically important, as only the Union can provide the scale, predictability, and coordination necessary to support Ukraine’s stability, and a stable Ukraine strengthens the resilience and security of the entire EU,” he said.

Meanwhile, the publication notes, “Kyiv’s supporters will have to decide how to present a united front and gain a majority in support of this policy, especially given that any reliance on national borrowing will likely require countries to participate.” Budapest “is not ready to approve any decision that places additional legal responsibility or financial obligations on the Hungarian government to guarantee payments to Ukraine,” said Hungary’s Minister for European Affairs János Bóka.

Finnish President Alexander Stubb said in Brussels on Monday that the EU may ultimately have to settle for a “combination” of three options: using Russian assets in conjunction with national and European borrowing. “But this must be decided by the European Council. And, of course, Belgium itself,” he added.

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