Overview

• Leaders at an informal Copenhagen summit discussed the plan but left key disagreements unresolved, with further talks shifting to finance ministers in Luxembourg next week.
• The proposed structure would place cash linked to immobilized Russian assets into a special-purpose vehicle that issues zero-coupon EU bonds, with Ukraine repaying only if Moscow pays war damages.
• European Commission and several capitals favor steering a significant share toward purchases of European-made weapons, while others argue for flexible budget support for Kyiv.
• Belgium, Euroclear and the European Central Bank flag legal and reputational risks, and EU capitals are debating national guarantees, a coalition-of-the-willing backstop and possible qualified-majority voting on future sanctions rollovers.
• The Kremlin condemned the initiative as theft and threatened legal action, as Ukraine received a separate €4 billion ERA tranche from the EU and a new U.S. Senate draft resolution urged monthly $10 billion disbursements from seized Russian assets.