EU Pledges Support for Ukraine’s Financial Needs Russian Assets Delayed

European Union leaders on Thursday night agreed to support Ukraine’s financial needs for the next two years but stopped short of releasing billions of euros in frozen Russian assets to fund the country’s defence. The decision came after marathon talks in Brussels, highlighting the legal and political challenges of using frozen Russian funds as reparations for Ukraine amid the ongoing war with Russia.

The plan to unlock €140 billion in frozen Russian assets held at the Belgian clearing house, Euroclear, has been delayed until December. Concerns from Belgium about potential legal consequences prevented immediate approval. EU leaders instead asked the European Commission to explore options for financial support based on Ukraine’s current and projected financing needs. Officials emphasized that Russia’s assets should remain immobilized until Moscow ends its war of aggression and compensates Ukraine for the damages caused.

European Commission President Ursula von der Leyen described the issue as “complex” and stressed that several points required clarification before any funds could be released. Despite the delay, the bloc committed to ensuring that Ukraine’s financial needs are covered for the next two years. European Council President Antonio Costa said, “Russia should take good note of this: Ukraine will have the financial resources it needs to defend itself.” Ukrainian President Volodymyr Zelensky welcomed the decision as a strong signal of political support from the EU.

The summit came ahead of a London meeting where UK Prime Minister Sir Keir Starmer plans to urge EU leaders to increase long-range missile supplies to Kyiv. The EU’s discussions coincided with additional sanctions targeting Russia’s oil revenues, intended to limit Moscow’s ability to fund its war efforts. Analysts noted that the EU’s support for Ukraine’s financial needs and the sanctions on Russia are complementary steps aimed at sustaining Ukraine’s defence capabilities while pressuring Russia economically.

Legal challenges remain a major hurdle for the use of frozen Russian assets. Belgium, in particular, expressed concerns about possible lawsuits if the funds are redirected. Belgian Prime Minister Bart De Wever highlighted the untested nature of the plan, warning it could expose Euroclear to litigation and potentially trigger a financial crisis. Russia, for its part, criticized the EU’s proposals, with spokeswoman Maria Zakharova warning of a “painful response” to any confiscatory measures.

The EU’s decision follows recent U.S. sanctions on Russia’s oil industry, which targeted Rosneft and Lukoil. These sanctions, combined with EU measures against Chinese businesses buying Russian crude, aim to deprive Moscow of revenue while signaling international unity in support of Ukraine. Despite the pressure, Russia has maintained that sanctions will have “certain consequences” but will not significantly affect its economic well-being.

As EU leaders plan to revisit the release of frozen Russian assets in December, the focus remains on ensuring that Ukraine’s financial needs are fully met while maintaining legal and diplomatic safeguards. The bloc’s commitment highlights Europe’s determination to support Kyiv in its ongoing struggle, even as political and legal obstacles continue to complicate the implementation of reparations from Russia