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EU leaders have gathered in Brussels to hold end-of-year talks with a pivotal decision regarding the use of frozen Russian Federation funds to strengthen Ukraine’s defense against Moscow.

“There is a clear choice: either funds now, or else blood in the future,” stated Poland’s Prime Minister Donald Tusk. “I’m not talking about Ukraine alone, I’m talking about Europe.”

The 27-nation union is working urgently to strengthen Kyiv’s hand while former U.S. President Donald Trump pushes for a rapid settlement to halt the conflict as the war drags towards the four-year mark.

The Financial Crisis and the Controversial Plan

The EU estimates the nation requires an extra €135bn ($159bn) to remain solvent over the 2026 and 2027, with the cash crunch set to start in the spring. To fill this gap, the EU's executive arm has put forward a plan to access approximately €210bn of Moscow's state reserves frozen within the bloc.

German leader Friedrich Merz said the proposal was essential to increase pressure on Vladimir Putin and send “a clear message to the Kremlin.”

A Split Union: Resistance and Juridical Concerns

However, a notable opposition bloc, spearheaded by Belgium—where the headquarters of Euroclear, which holds most the frozen funds—is raising questions about possible juridical challenges. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.

Technically, this group may not be enough to veto the plan should a vote be held under qualified majority voting procedures. But in practical political terms, it creates the process very awkward for everyone involved.

There remains no sign of a middle ground, as the alternative option—relying on European Union joint borrowing—would need unanimous approval, and would almost certainly be blocked by Hungary, which flatly denies any further help for Ukraine.

Officials' Statements Ahead of the Talks

EU leaders have stated emphatically that the summit talks will continue for however long it is necessary to achieve an agreement, cautioning that the future of Ukraine and Europe’s credibility are on the line.

• Ursula von der Leyen, the head of the EU executive, said she would not depart from the meeting before an agreement is concluded.
• In contrast, Slovakia's Prime Minister Robert Fico reportedly joked that he could be kept until the New Year, and he would not back it.
• Ukraine's President Volodymyr Zelenskyy is scheduled to participate in the meeting in a last-ditch attempt to convince the critics.

Strong Opposition from Hungary

The Hungarian Prime Minister Viktor Orbán proved to be uncompromising, calling the idea of utilizing seized Russian funds “foolish” and equivalent to “marching into the conflict.” He voiced agreement for Belgium’s cautious stance.

Appeals for Unity and a Solution

Other leaders stressed the urgency for a resolution.

• António Costa, President of the European Council, vowed: “We will work on this today, if it’s necessary tomorrow, but we will not depart from the summit before reaching a final decision.”
• Kaja Kallas, the EU’s foreign policy chief, noted that work to allay Belgium’s concerns and distribute the liability fairly were ongoing. She put the chances of a successful outcome at “50/50.”
• Micheál Martin, Ireland’s leader, said his country was “very much in favour” of using the immobilised funds.

The scene is prepared for a possibly protracted and tense negotiation in Brussels, with the fate of significant monetary support for Ukraine resting in the balance.