EU Leaders Eye Russian Assets for Ukraine Aid

European leaders are contemplating using frozen Russian assets to fund a €140 billion loan for Ukraine. The proposal aims to support Ukraine's defense and operations during 2026-2027. However, legal complications arise due to international laws protecting sovereign assets, posing challenges for EU guarantees and repayment terms.

European leaders showed strong support for a plan to utilize frozen Russian assets worth €140 billion as a loan to Ukraine. The proposal, which requires further legal review, aims to assist Ukraine following the cessation of U.S. military aid amidst EU fiscal challenges.

In a meeting led by Antonio Costa, leaders discussed the potential benefits and legal hurdles, particularly international laws safeguarding sovereign assets. Belgium, hosting most of the frozen funds, demands EU guarantees before committing to the plan, supported by France and Luxembourg.

The loan would procure weapons and sustain Ukraine but raises questions about liability sharing among EU states. Members like Germany and Italy, keen for defense contracts, advocate for G7 involvement, including the U.S. and Japan. Legal issues continue to prompt cautious optimism among EU officials.

(With inputs from agencies.)