Following the recent permanent freeze of Russian assets, EU leaders at the Brussels summit made progress toward using them to provide a 90 billion euro loan to Ukraine, with Belgium open to compromises under guarantees. Fallback to EU budget if needed. Mercosur trade deal delayed to January amid protests.
Building on the December 12 decision by 25 EU states to indefinitely freeze approximately 210 billion euros in Russian central bank assets, leaders at the Brussels summit on December 18 prioritized mobilizing these funds—primarily held by Belgium's Euroclear—for Ukraine aid.
Progress was reported as Belgian Prime Minister Bart De Wever softened opposition, stating: “If it is fully mutualized and the risk is eliminated for our country, then we will jump into the abyss together with all Europeans and hope the parachute holds us.” The plan centers on a 90 billion euro reparations loan, disbursed in tranches from April 2026 and repayable only if Russia compensates for war damages.
Ukrainian President Volodymyr Zelensky pressed: “I know Russia is intimidating different countries over this decision. But we must not fear threats; we must fear Europe's weakness.” Polish Prime Minister Donald Tusk warned: “We have a simple choice: money today or blood tomorrow,” while German Chancellor Friedrich Merz backed it to demonstrate “strength and determination towards Russia.” The Kremlin has labeled it a potential casus belli.
Failure to agree would trigger use of the EU budget margin as an emergency measure to avert Ukraine's bankruptcy amid ongoing resistance to the invasion, bolstering EU credibility especially with uncertain U.S. support.
Separately, the EU-Mercosur trade deal was pushed to mid-January due to Italian internal pressures under Giorgia Meloni, farmers' protests blocking Brussels, and opposition from France and Poland.