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European Union leaders have gathered in Brussels for year-end talks with a pivotal choice on using immobilized Russian Federation assets to strengthen Ukraine’s defense against Russia.

“We have a clear option: it's funds today, or else bloodshed tomorrow,” warned the Polish leader Donald Tusk. “This isn't just about Kyiv only, I’m talking about the entire continent.”

The 27-member union is working urgently to strengthen Kyiv’s hand while former U.S. President Donald Trump pushes for a quick deal to halt the fighting as the war drags towards the fourth mark.

The Financial Crunch and the Proposed Plan

European officials calculate the nation requires an extra €135bn ($159bn) to remain solvent over the 2026 and 2027, with the cash crunch set to start in the spring. To plug this hole, the European Commission has put forward a scheme to access approximately €210bn of Moscow's state reserves seized in the European Union.

Germany's leader Friedrich Merz argued the proposal was essential to ramp up pressure on Vladimir Putin and send “a clear signal to the Kremlin.”

A Divided Union: Opposition and Juridical Concerns

However, a significant group of dissenters, led by Belgium—the home of Euroclear, which holds the majority of the frozen funds—is voicing concerns about possible legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed reservations.

From a procedural standpoint, this coalition is not enough to block the proposal should a vote be held under qualified majority rules. Yet in practical political terms, it creates the situation very awkward for everyone concerned.

There remains no sign of compromise, as the alternative pathway—relying on European Union joint borrowing—would require unanimous approval, and would almost certainly be obstructed by Hungary, which categorically rejects providing any further help for Kyiv.

Leaders’ Statements Before the Negotiations

European leaders have insisted that the Brussels discussions will last as long as it takes to achieve an agreement, cautioning that the future of Ukraine and Europe’s credibility are on the line.

• Ursula von der Leyen, the head of the EU executive, declared she won’t leave the meeting until an deal is reached.
• In a stark contrast, Slovak leader Robert Fico allegedly joked that he could be kept until the New Year, and he still wouldn’t back it.
• Ukraine's President Volodymyr Zelenskyy is scheduled to join the summit in a final attempt to persuade the skeptical nations.

Strong Opposition from Hungary

Hungary’s Prime Minister Viktor Orbán was uncompromising, labeling the idea of utilizing seized Russian funds “foolish” and equivalent to “marching into the conflict.” He voiced support for the Belgian cautious stance.

Appeals for Consensus and a Resolution

Other leaders emphasized the urgency for a resolution.

• António Costa, President of the European Council, vowed: “Negotiations will continue on the issue today, and if needed tomorrow, but we will not depart from the summit before reaching a final decision.”
• Kaja Kallas, the EU’s top diplomat, noted that work to allay Belgium’s concerns and share the liability fairly were continuing. She estimated the chances of a successful outcome at “fifty-fifty.”
• Micheál Martin, Ireland’s leader, said his country was “strongly in support” of the use of the frozen funds.

The stage is set for a potentially long and tense negotiation in the EU capital, with the fate of significant financial support for a nation at war hanging in the balance.