EU Nears Breakthrough on Ukraine Financing Amid Russian Asset Controversy

The European Union is working on a financial solution to support Ukraine in 2026 and 2027 amidst U.S. funding shortages. The EU aims to utilize $244.15 billion of frozen Russian assets despite Belgium's need for financial guarantees. Other G7 nations are encouraged to follow the EU's approach.

The European Union is on the verge of finalizing a financial solution to aid Ukraine in the years 2026 and 2027. Amid decreasing financial contributions from the United States, EU leaders pledged on October 23 to support Ukraine as it confronts a Russian invasion.

The solution involves leveraging $244.15 billion in immobilized Russian sovereign assets. However, Belgium, where most frozen assets are held, seeks financial guarantees from other EU countries against potential repercussions if Russia sues. Discussions are set to culminate at the December 18-20 summit in Brussels.

EU's plan is to issue up to 165 billion euros in reparations loans, asking institutions with Russian cash to exchange it for EU bonds. G7 countries like the UK and possibly Canada and Japan, are considering similar actions to provide consistent financial backing for Ukraine.

(With inputs from agencies.)