EU Leaders Consider Funding Ukraine for Two More Years Using Frozen Russian Assets

Ukrainian President Volodymyr Zelensky expressed gratitude on Thursday, October 23, for the European Union's decision to investigate funding options for Ukraine for two additional years, including the potential use of frozen Russian assets. He shared his thoughts on social media platform X, stating that the Brussels summit yielded positive outcomes. "We have secured political support regarding frozen Russian assets and their optimal utilization to defend against Russian aggression," Zelensky announced. The European Commission has been directed to draft necessary details for funding, as EU leaders turned their focus toward addressing Ukraine's pressing financial needs amidst ongoing conflict with Russia. Reports from the summit indicated a commitment to extend financial assistance, though a comprehensive plan involving a €140 billion reparations loan was postponed until December to allow for more discussion. Diplomats noted that the initial proposals had to be diluted due to strong objections, particularly from Belgium, the nation housing a significant portion of the Russian central bank's frozen assets. European Council President António Costa emphasized the importance of the bloc's message, stating, "They have to pay for this war," in light of the discussions surrounding financial support. The EU's dedication to Ukraine's financial stability underscores the urgency surrounding military and defense assistance as the conflict continues. Earlier in the day, President Zelensky underscored the importance of securing new funding channels, which are considered vital for Ukraine's survival as the war has caused immense devastation. He highlighted the fact that approximately €200 billion of Russian central bank assets have been frozen since the onset of the Russian invasion in 2022. The European Commission has proposed a complex loan plan that could facilitate €140 billion in aid to Kyiv over the coming years, without outright confiscation of these funds. However, concerns about potential legal ramifications have been raised by Euroclear, the international deposit organization based in Belgium that oversees the bulk of these assets, emphasizing the need for cautious deliberation. The discussions in Brussels were therefore heavily focused on addressing these legal worries as the EU considers its next steps in supporting Ukraine during this critical period. Related Sources: • Source 1 • Source 2