EU Ministers Fail to Agree on Plan to Use Frozen Russian Assets for Ukraine

Overview

• EU finance ministers in Brussels failed to reach agreement on tapping frozen Russian central bank assets for Ukraine, with several countries citing unresolved concerns.
• Denmark, holding the rotating presidency, asked the European Commission to prepare legal mechanisms, with proposals expected before the 18 December EU summit.
• The Commission is promoting a so‑called reparational credit of about €140 billion backed by the frozen reserves to cover Ukraine’s needs with limited direct costs to member budgets.
• Belgium has raised legal objections, and Politico reports that Hungary and Slovakia could move to block the initiative.
• Valdis Dombrovskis says the EU’s 2021–2027 budget has no space for Ukraine and commercial borrowing is no longer viable, and procedural votes could delay any asset‑based transfers for months, risking a funding gap by April 2026.