EU leaders race to reach deal on funding Ukraine

European Union leaders are racing to secure a funding deal for Ukraine that has been cast as a choice between “money today or blood tomorrow”, as Belgium comes under rising pressure over its opposition to a loan secured against Russia's frozen assets.

- Jennifer Rankin Brussels Helena Smith Athens

At a summit billed as make or break, EU leaders are discussing an unprecedented move to tap some of Russia’s €210bn (£184bn) sovereign assets frozen in the bloc days after the full-scale invasion of 2022. Under the scheme, the EU would provide Kyiv with a €90bn loan to help keep Ukraine in the fight, as Russia ekes out gains on the battlefields.

Poland’s prime minister, Donald Tusk, said the choice was simple: “Money today or blood tomorrow.”

Ukraine’s president, Volodymyr Zelenskyy, said he wanted to see a decision on funding by the end of the year, amid forecasts that his country faces bankruptcy in the spring.

He told EU leaders: “If these funds can serve European security by holding the aggressor accountable for its war against Ukraine and against Europe, then why would we leave Moscow with any hope or confidence that the money will still come back no matter what it has done. I know Russia is intimidating different countries over this decision. But we should not be afraid of threats we should be afraid of Europe being weak." EU leaders have been presented with two options to meet Ukraine's estimated €136bn funding needs in 2026 and 2027: a "reparations loan" secured against Russian frozen assets or joint EU borrowing to fund Kyiv.

The European Commission, which proposed the €90bn loan, expects Ukraine's other western allies to make up the rest.