Overview
- Leaders opened talks on a European Commission plan to borrow against immobilised Russian central bank reserves and lend the proceeds to Ukraine for 2026–27.
- Belgium, where Euroclear holds the bulk of the assets, is withholding consent unless partners provide ironclad, potentially unlimited guarantees and share liability across jurisdictions.
- Russia’s central bank has sued Euroclear for around $230 billion, intensifying legal risks that have also prompted reservations from countries including Italy, Hungary, Malta, Bulgaria and Slovakia.
- Supporters such as Ursula von der Leyen and Germany’s Friedrich Merz argue the loan is vital for EU credibility and Ukraine’s defense, with Merz putting the odds of a deal at about 50/50 and Poland warning of “money today or blood tomorrow.”
- Alternatives like EU joint borrowing face unanimity hurdles and expected vetoes, and leaders signal they will keep negotiating until a financing solution for Ukraine is secured.