European countries are reportedly working on an emergency plan to prevent Ukraine from running out of funds early next year if no agreement is reached on using Russia’s frozen assets to finance Kyiv’s war effort, according to Politico.
اضافة اعلان
Last month, EU leaders had hoped to approve a proposal to use Moscow’s frozen reserves to provide a €140 billion “compensation loan” to Ukraine. The plan faced strong opposition from Belgian Prime Minister Bart De Wever, who expressed reservations about handling the funds.
With cash reserves in Kyiv running low and peace talks intensifying, the issue of using Russian assets has gained urgency. An EU official stated, “If we don’t act, others will move before us.”
The plan ties the repayment of frozen assets to Russia agreeing to pay war reparations, an unlikely scenario. EU envoys recently discussed options with the European Commission in Brussels, with countries including France, Germany, the Netherlands, Lithuania, and Luxembourg urging the Commission to continue developing proposals for funding Ukraine.
European Commission Vice President Valdis Dombrovskis highlighted on November 4 the need for a temporary financing model, noting delays would make the situation increasingly difficult. Ukrainian officials have warned of a funding shortfall in the first months of 2026.
French President Emmanuel Macron said EU allies would finalize a solution in the coming days to secure funding and support Ukraine’s image.
The compensation loan remains the most widely supported long-term solution, as EU member states are reluctant to deplete national budgets through direct cash grants, given existing deficits and high borrowing costs. Convincing Belgium to participate is considered crucial.
As an alternative, EU policy experts are considering a “bridge loan” funded by EU loans to stabilize Ukraine in early 2026, allowing more time to implement the full compensation loan using Russian assets in a way acceptable to Belgium. Ukraine would repay the initial bridge loan once long-term compensation financing becomes available.
However, obstacles remain: EU-wide approval is required for such collective borrowing, and Hungary has historically opposed new funding measures for Ukraine’s war effort. The temporary loan could be framed as supporting reconstruction rather than military operations.
The revived momentum in peace negotiations, including proposals from the Trump administration, could allow frozen assets to be used for reconstruction, but European officials insist the EU should maintain control over decisions regarding these assets and the timing of sanctions relief on Russia.
