Using Russian assets to help Ukraine is looking like Europe’s least-bad option

Subscribe to enjoy similar stories. Ukraine is running out of money. Europe has a plan that would largely balance the books, win it a seat in the U.S.-led negotiations to end the war and equip Kyiv to seek better terms for peace.

The problem: It can’t agree on putting it into action. European leaders have set a December deadline to make a decision on whether to lend Kyiv around half of the $200 billion of frozen Russian assets held in the continent over the next two years. Belgium, where most Russian central-bank deposits are held, has led opposition to the plan, fearing legal retribution.

The European Union expects to make the call at a summit next week. Failure to tap the assets would be devastating for Ukraine, which is counting on the funds to cover two thirds of its core budget and military needs. It would also keep the Europeans sidelined in peace talks, where Ukraine’s ability to withstand Russian attacks is Kyiv’s key point of leverage in negotiations.

Europe now picks up most of the tab for Ukraine’s defense against Russia’s invasion, after the Trump administration almost completely cut off financial assistance to Kyiv. European leaders have pledged to continue aiding Ukraine’s war effort come what may, but other means of funding look costlier and even more politically perilous than dipping into the Russian assets. Aside from making the $105 billion loan, the European Union has two options: raising fresh debt in financial markets, or relying on individual member countries to pony up.