Overview

• Informal talks in Copenhagen opened the debate, with a formal decision expected at an EU summit in Brussels in about three weeks.
• The proposed mechanism would have Euroclear replace Russian cash with EU Commission bonds so the Commission can extend an interest-free loan to Ukraine without seizing the assets.
• Support has emerged from Chancellor Friedrich Merz, Finland’s president and Estonia’s prime minister, while Belgium warns it will not carry the legal or fiscal risk alone.
• Russia labels the approach theft and threatens consequences for participating states and institutions, warning of damage to investor confidence.
• About €300 billion in Russian central-bank reserves are frozen globally, with roughly €210 billion at Euroclear in Brussels, as Ukraine cites funding needs exceeding €100 billion next year and around €120 billion for 2026.