The European Union is very close to a solution for financing Ukraine in 2026 and 2027, which would be supported by at least a qualified majority of member states, said the chairman of the EU summits, Antonio Costa.
EU leaders pledged on October 23 to provide financial support to Kiev over the next two years as Ukraine defends itself against a Russian invasion and US contributions are reduced.
Leaders are due to decide at a summit in Brussels on December 18 how to deliver on that promise. Costa told reporters in Dublin that he would keep them at the table for days, if necessary, until they reached a deal, Reuters reported.
Since most EU governments are struggling with large public debts, the most desirable way for them to finance Ukrainian defense is to put into operation around 210 billion euros of Russian state assets that were frozen in Europe after Moscow invaded Ukraine in 2022.
Despite the political momentum, the project is not simple because Belgium, where most of the frozen assets are located, is seeking guarantees from other EU members that they will share any potential financial consequences if Russia were to successfully sue Belgium over this mechanism.
Talks on providing guarantees to Belgium are ongoing and will culminate at a summit – the European Council.
"We are now working on fine-tuning a legal and technical solution that could receive the approval of at least a qualified majority of member states. I think we are very close to a solution," said Košta.
"It is certain for me that we will make a decision on December 18th. But, as I shared with my colleagues, if necessary, we will continue on December 19th or 20th – until we reach a positive conclusion," he said.
Maintaining Ukraine's funding and defense is crucial for the EU, as the bloc sees the Russian invasion as a threat to its own security. Most member states believe that as long as Moscow is militarily engaged in Ukraine, it will not attack any EU country, giving Europe time to prepare its own defense.
The European Commission wants to issue a "reparation loan" of up to 165 billion euros to Ukraine by asking all institutions in member states holding Russian assets to exchange them for AAA-rated European bonds issued by the Commission. The money would then be paid to Ukraine in installments over the next two years, Reuters reports.
To spread the risk of Russian retaliation, Belgium wants other G7 countries that own Russian state assets – such as Britain, Canada or Japan – to apply the same model.
British Prime Minister Keir Starmer stated on November 25 that London was ready to join a European initiative to support Ukraine based on the value of frozen Russian assets.
The Guardian newspaper reported on Monday that London is ready to hand over eight billion pounds of assets frozen in Britain to support Ukraine.
Canada said in October that it would consider such an option, while Japan has not yet decided how it will specifically expand financial support to Ukraine, although it has not ruled out the possibility of using frozen Russian assets under its jurisdiction.
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