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EU leaders are convening in the Belgian capital to hold year-end talks facing a pivotal choice regarding using immobilized Russian assets to strengthen the Ukrainian defense against Russia.

“We have a clear choice: either funds today, or else blood in the future,” stated Poland’s leader Donald Tusk. “This isn't just about Kyiv only, this concerns the entire continent.”

The 27-nation bloc is scrambling to strengthen Kyiv’s hand while ex-American leader Donald Trump advocates for a rapid settlement to halt the fighting as the invasion continues towards the four-year mark.

The Financial Crunch and the Proposed Solution

The EU estimates the nation needs an extra €135bn ($159bn) to stay afloat over the 2026 and 2027, with the funding shortfall expected to begin in the spring. To plug this gap, the European Commission has proposed a scheme to tap some €210bn of Russian central bank assets seized in the European Union.

Germany's leader Friedrich Merz argued the proposal was essential to ramp up pressure on Vladimir Putin and send “a clear message to the Kremlin.”

A Split Bloc: Resistance and Legal Concerns

However, a significant group of dissenters, led by Belgium—where the headquarters of Euroclear, which holds most the Russian assets—is voicing concerns about possible legal issues. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered doubts.

From a procedural standpoint, this group may not be sufficient to veto the proposal if a vote gets called under qualified majority voting procedures. But in practical political terms, it makes the situation very awkward for everyone concerned.

But there is no sign of a middle ground, as the only other option—relying on EU joint borrowing—would need unanimity, and would almost certainly be blocked by Hungary, which categorically rejects any further assistance for Ukraine.

Officials' Statements Before the Negotiations

European officials have stated emphatically that the Brussels talks will continue for however long it takes to reach an agreement, cautioning that Ukraine’s survival and the EU's standing are on the line.

• Ursula von der Leyen, the European Commission president, declared she would not depart from the meeting before an agreement is concluded.
• In a stark contrast, Slovakia's leader Robert Fico reportedly joked that he could be kept until the new year, and he would not support it.
• Ukraine's President Volodymyr Zelenskyy is scheduled to join the summit in a final attempt to persuade the skeptical nations.

Firm Resistance from Budapest

Hungary’s Prime Minister Viktor Orbán proved to be blunt, calling the proposition of utilizing frozen Russian funds “stupid” and amounting to “marching into the conflict.” He voiced agreement for Belgium’s cautious position.

Calls for Unity and a Resolution

Other EU heads of state emphasized the urgency for a resolution.

• António Costa, European Council president, pledged: “We will work on this today, if it’s necessary tomorrow, but we will never leave the summit without a final decision.”
• Kaja Kallas, the EU’s foreign policy chief, commented that efforts to address Belgian worries and share the liability equally were ongoing. She put the chances of a successful outcome at “fifty-fifty.”
• Micheál Martin, the Irish leader, said his country was “strongly in support” of using the frozen assets.

The stage is set for a possibly long and strained negotiation in the EU capital, with the future of significant monetary support for Ukraine resting in the balance.