EU Faces Crucial Decision on Financing Ukraine's Future

EU leaders will meet to determine how to finance Ukraine in 2026 and 2027 amid the ongoing conflict with Russia. The plan involves using frozen Russian assets, but Belgium's approval is needed. The decision is critical for EU security and political credibility as U.S. support wanes.

European Union leaders are set to make a pivotal decision on Thursday regarding the financing of Ukraine in 2026 and 2027 to continue its resistance against Russia's invasion. The preferred strategy involves utilizing Russian assets currently frozen in the EU, contingent upon Belgium's crucial approval.

Amid dwindling U.S. financial support for Kyiv, the EU aims to sustain Ukraine in its defense efforts, viewing the conflict as a significant threat to European security. The EU plans to leverage 210 billion euros of frozen Russian central bank assets to provide a loan to Ukraine, given the constraints on its national budgets.

The urgency of the decision stems from the potential financial collapse of Ukraine by the second quarter of the next year, which could invite further Russian aggression towards the EU. Discussions among leaders will focus on securing guarantees to persuade Belgium without overburdening other member states, with a solution expected by Friday morning.

(With inputs from agencies.)