European Union Holds Summit to Determine Fate of Frozen Russian Assets

What Happened?

The European Union (EU) held a summit this week in Brussels to discuss the potential for using two hundred billion euros in frozen Russian assets to fund Ukraine’s government and military operations. Poland’s Prime Minister Donald Tusk spoke in favor of the move, saying the EU is facing a stark choice, ‘money today or blood tomorrow.’ Hungarian Prime Minister Viktor Orban promised to veto the move if a formal vote was held.

Ukrainian President Zelenskyy warned European leaders if they failed to come to an agreement, Russia would see it as a sign of weakness. German Chancellor Friedrich Mertz said, ‘my impression is we can come to an agreement.’ 

Why it Matters

The decision on what the EU should do with frozen Russian assets will have consequences for Russia, the EU, and Ukraine. Ukraine is already facing funding shortages for its government, and if those are not addressed, Kiev could run out of money to operate by mid-2026. If the frozen Russian assets are allowed to be used by Ukraine, it will likely be able to continue operating and fighting for the duration of 2026. 

For Russia, the decision would have significant financial implications, since the total amount of assets frozen represents nearly fifty percent of the annual budget for the Russian government. The permanent loss of those funds would be difficult for Russia to recoup and would likely impact some of the Russian government’s operations. If the EU voted to allow frozen Russian assets to be used by Ukraine, Moscow would likely consider such a decision to be a hostile act to Russia.

Making the decision will be a test of will for the EU. Poland, which shares borders with Ukraine, has been the most vocal supporter of the measure, largely because many in Poland believe if Ukraine falls, the security of their own territory will be directly threatened.

Hungary, which has been friendly towards Moscow, has indicated they will oppose the measure, but if they are the only EU country to do so, the pressure on Hungary will be considerable to give in. If the EU is unable to come together to make a decision on frozen Russian assets, its ability to unite in the face of possible Russian military action will be in doubt.

Belgium, where most of the frozen Russian assets are held, offered support for using the assets for Ukraine, but only if they were given security guarantees to help mitigate the risks of doing so. Which means they believe Russia could retaliate against them directly if the decision to use Russian assets to fund Ukraine goes forward.

How it Affects You

Despite all the possible political ramifications from the EU summit, ultimately, the issue may be decided by international courts. If they rule the EU cannot send those funds to Ukraine for legal reasons, the effort to do so may end there. Whatever international courts rule, the EU’s ability to act decisively and collectively will still be tested.