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Ukrainian President Volodymyr Zelensky has called on European Union leaders to authorize the use of frozen Russian central bank assets to support Kyiv’s war economy and reconstruction needs, warning that delays could endanger both Ukraine’s financial survival and Europe’s credibility nearly four years into the war.
Speaking during a summit in Brussels on Thursday, Zelensky said Ukraine requires a clear decision before year-end to maintain stability as a major funding gap looms. The European Commission has estimated Ukraine needs an additional €135 billion ($159 billion) through 2026, with the cash shortfall projected to begin as early as April.
"Russian assets must be used to defend against Russian aggression and rebuild what was destroyed by Russian attacks. It's moral. It's fair. It's legal," Zelensky said.
As part of a contingency strategy, Zelensky said that Ukraine plans to allocate any incoming financial aid to expand domestic drone manufacturing capabilities if the war continues, emphasizing the need to boost technological defense infrastructure.
Ukraine currently faces a potential budget deficit of €45 to €50 billion in the coming year. While Zelensky acknowledged that most EU leaders support the reparations-based loan plan, he warned against leaving the mechanism vulnerable to political obstruction, particularly from Moscow.
"We really do not want this instrument to remain in the hands of the Russians. We believe they will do everything to block it," he said.
Zelensky also confirmed that further discussions with U.S. officials are scheduled in Washington, with talks expected to focus on the Russian-occupied Donbas region, the damaged Zaporizhzhia Nuclear Power Plant (ZNPP), and the terms of reconstruction loans.
"Donbas is an unresolved issue; we have different views," Zelensky said, emphasizing that despite ongoing negotiations, major disagreements persist. He added that Kyiv has yet to receive a clear explanation from Washington on how U.S. security guarantees would function in the event of renewed aggression from Russia.
Zelensky also noted that EU countries have not offered security guarantees akin to NATO’s Article 5, which requires collective defense in case of an attack.
The European Commission has proposed a novel mechanism to tap €210 billion in frozen Russian assets, mostly held at Euroclear, an international securities depository based in Belgium. Under the plan, the EU would borrow against the expected income from these assets to provide Ukraine with €90 billion in funding over two years. Kyiv would only be responsible for repayment once Russia provides compensation for war damages.
However, Belgian Prime Minister Bart De Wever expressed skepticism ahead of the summit, citing potential legal and financial repercussions for his country due to its role in holding the majority of the frozen assets.
"I have not seen a text that could persuade me to give Belgium's agreement," De Wever told Belgian lawmakers, later stating that the Commission's guarantees remain insufficient.
In response, EU officials argued that safeguards had been structured to shield Belgium, including risk-sharing arrangements among member states. Still, Belgium has urged the bloc to pursue a more conventional EU-funded alternative—an approach diplomats say is unlikely due to Hungary’s firm opposition.
Despite the impasse, European Commission President Ursula von der Leyen insisted that a resolution was imminent, stating, "We will not leave the European summit without a solution for the funding of Ukraine."
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