EU leaders will look Thursday to greenlight a potential mammoth new loan for Ukraine using Russian frozen assets, in a bid to bolster Kyiv as US President Donald Trump vacillates on peace efforts with Moscow.
Ukrainian President Volodymyr Zelensky will join a summit of the EU’s 27 leaders in Brussels — before heading to London on Friday — as Europe presses to shore up support after Trump put on ice a proposed meeting with Russia’s Vladimir Putin in Budapest.
Zelensky and his key backers are seeking to seize on Trump’s demand for Russia and Ukraine to stop fighting along the current front line and shift the onus from Kyiv to Moscow to make concessions.
Hopes that Trump could take against Putin got a boost Wednesday when US Treasury Secretary Scott Bessent said Washington would unveil “a substantial pickup” in sanctions against Russia, and accused the Russian leader of not being “honest and forthright” in talks.
While the talks in the British capital look set to focus more on keeping the mercurial US leader on board, the summit in Brussels will centre on how to keep funding Ukraine and piling more pressure on Moscow.
A key part of the EU’s support for Kyiv rests on a plan for a new 140-billion-euro ($163-billion) “reparations loan” funded by Russian central bank assets frozen in the bloc.
Belgium, where the bulk of the money is held at international deposit organisation Euroclear, has demanded guarantees the rest of the EU will share any liabilities if Russia goes to court.
While key questions remain, diplomats hope EU leaders will give the bloc’s executive the go-ahead to draw up a formal legal proposal for the loan that would only be paid back by Kyiv once Moscow coughs up for the damage it has wrought during its invasion of Ukraine.
“It’s essential to do it to be able to keep Ukraine in the fight,” an EU diplomat said, speaking on condition of anonymity to discuss internal deliberations.
Officials say the funds — the bulk of which the European Commission says should be earmarked to buy weapons in Europe — could keep Ukraine going for at least another two years.
Even if an initial nod is given at the summit, there still looks set to be months of wrangling over the small print before the loan can be finalised.
“There are many issues still on the table,” the diplomat said.
At the same time as it looks to ensure Kyiv remains afloat, the EU has also sought to turn the screws on Moscow with new sanctions.
Just ahead of the summit, EU countries agreed Wednesday to impose a biting new round of measures — including a ban on imports of Russian liquefied natural gas from end 2026.
Kremlin-friendly Slovak Prime Minister Robert Fico held up approval for the sanctions until he got assurances from Brussels over protections for Bratislava’s car industry.
The sanctions also see the EU blacklist more tankers in Russia’s “shadow fleet”, used to get round oil export restrictions, and impose new rules on Moscow’s diplomats to curb their travel around Europe.
While attention will primarily home in on the current war wracking the continent, leaders will also cover plans to prepare for a potential broader conflict with Russia in the future.
After a series of high-profile air incursions and mysterious drone flights, Brussels has proposed building a system of anti-drone defences as one of a number of urgently needed defence priorities.
Leaders are set to endorse a roadmap that aims to prepare the EU for war by 2030.
