By Peter.
EU leaders are convening for a high-stakes summit in Brussels on Thursday, December 18, 2025, to decide on a controversial plan to use profits from €210 billion in frozen Russian central bank assets—mostly held by Belgium-based Euroclear—as collateral for a massive “reparations loan” to Ukraine, potentially worth up to €165 billion for military and civilian needs in 2026–2027.
The proposal, pushed by European Commission President Ursula von der Leyen and supporters like German Chancellor Friedrich Merz, aims to bolster Kyiv amid dwindling U.S. aid under President Donald Trump and Russia’s battlefield advances. Without fresh funding, Ukraine risks severe financial strain within months.
Belgium remains the primary holdout, with Prime Minister Bart De Wever insisting on ironclad guarantees against Russian retaliation, including lawsuits that could burden Brussels with multibillion-euro liabilities. De Wever recently stated he has “not yet seen any text” convincing him to shift position, though diplomats express cautious optimism for a breakthrough.
Russia has escalated threats: Its central bank filed a Moscow lawsuit against Euroclear seeking ~$230 billion in damages, labeling EU plans “illegal.” President Vladimir Putin, in a December 17 defense ministry address, derided European leaders as “piglets” hoping to profit from Russia’s collapse, vowed to achieve war goals “unconditionally” via diplomacy or force, and dismissed the continent as in “total degradation.”
Parallel U.S.-led diplomacy adds urgency: Trump envoys Steve Witkoff and Jared Kushner are set to meet Kremlin representative Kirill Dmitriev in Miami this weekend for talks on a peace framework. Ukrainian officials are also engaging in the U.S., amid reports of progress on security guarantees but stalemates over territory.
Zelenskyy, attending the summit in person, warned failure on the loan would pose “serious challenges” for Ukraine. EU foreign policy chief Kaja Kallas stressed no Russian willingness for genuine peace talks has emerged.
The indefinite asset freeze approved last week removes veto risks (e.g., from Hungary) and bolsters the loan’s legal foundation, but consensus requires unanimous approval.
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