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European Union heads of state have gathered in the Belgian capital to hold year-end discussions with a key choice regarding using immobilized Russian Federation assets to strengthen the Ukrainian defence in the war against Moscow.

“We have a simple choice: either funds now, or else bloodshed in the future,” stated the Polish Prime Minister Donald Tusk. “This isn't just about Ukraine alone, this concerns Europe.”

The 27-nation union is working urgently to fortify Ukraine's position while ex-American leader Donald Trump pushes for a rapid settlement to halt the fighting as the invasion continues towards the four-year mark.

The Financial Crunch and the Controversial Plan

The EU estimates Ukraine requires an extra €135bn ($159bn) to stay afloat during the next two years, with the cash crunch expected to begin in the spring. To fill this hole, the EU's executive arm has proposed a plan to tap approximately €210bn of Moscow's state assets seized within the European Union.

German Chancellor Friedrich Merz said the proposal was essential to ramp up the pressure on Vladimir Putin and send “a strong message to the Kremlin.”

A Split Union: Opposition and Juridical Concerns

However, a significant group of dissenters, spearheaded by Belgium—the home of Euroclear, which custodies most the frozen funds—has been voicing concerns about potential juridical challenges. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.

Technically, this coalition is not sufficient to block the proposal should a vote be held under qualified majority voting procedures. Yet politically, it creates the situation extremely difficult for everyone concerned.

There remains little indication of a middle ground, as the only other option—relying on European Union joint borrowing—would need unanimity, and would almost certainly be blocked by Hungary, which categorically rejects any further assistance for Kyiv.

Officials' Comments Before the Talks

EU leaders have stated emphatically that the summit discussions will last as long as it takes to reach an consensus, warning that Ukraine’s survival and Europe’s credibility are at stake.

• Ursula von der Leyen, the head of the EU executive, said she would not depart from the meeting until an deal is reached.
• In contrast, Slovak Prime Minister Robert Fico allegedly remarked that they can keep him there until the new year, and he still wouldn’t back it.
• Ukraine's President Volodymyr Zelenskyy is set to join the meeting in a last-ditch attempt to convince the skeptical nations.

Firm Resistance from Hungary

The Hungarian Prime Minister Viktor Orbán was blunt, calling the proposition of utilizing frozen assets “foolish” and amounting to “marching into the war.” He voiced agreement for the Belgian cautious position.

Appeals for Unity and a Solution

Other EU heads of state emphasized the urgency for a decision.

• António Costa, President of the European Council, vowed: “Negotiations will continue on the issue today, if it’s necessary tomorrow, but we will never leave the Council without a final decision.”
• Kaja Kallas, the EU’s top diplomat, noted that work to allay Belgian worries and share the risk fairly were ongoing. She put the odds of a deal at “fifty-fifty.”
• Micheál Martin, the Irish leader, said his nation was “very much in support” of the use of the frozen funds.

The stage is set for a potentially long and strained negotiation in the EU capital, with the future of substantial monetary aid for Ukraine hanging in the balance.