EU urgently seeks agreement on using frozen Russian assets for Ukraine, as US touts other ideas

Russian President Vladimir Putin attends an official welcome ceremony at the Administrative complex Yntymak-Manas Ordo, in Bishkek, Kyrgyzstan. (AP)
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Updated 26 November 2025
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EU urgently seeks agreement on using frozen Russian assets for Ukraine, as US touts other ideas

  • Under the EU plan, the frozen Russian central bank assets in Europe would be lent to Ukraine for Kyiv to use for defense and regular budget needs

BRUSSELS: The European Union has accelerated efforts to agree on a scheme to use frozen Russian assets to help Ukraine after a US-backed peace plan last week set out different ideas, EU officials said.
EU leaders tried at a summit last month to agree on a plan to use 140 billion euros ($162 billion) in frozen Russian sovereign assets in Europe as a loan for Kyiv, but failed to secure the backing of Belgium, where much of the funds are held.
The European Commission, the EU executive body, hopes to address Belgium’s concerns in a draft legal proposal which it will present this week on using the frozen sovereign assets to support Kyiv in 2026 and 2027, EU officials said.
Work on the EU plan was already under way but details that emerged last week of how the assets might be used under the US-backed plan, which European leaders saw as heavily favoring Moscow, have helped focus minds in the 27-nation bloc.
“It surely made work on this even more urgent,” one official with knowledge of preparations for the project said.

EU MUST HELP UKRAINE DEFEND ITSELF, VON DER LEYEN SAYS
Under the EU plan, which has been discussed since October, the frozen Russian central bank assets in Europe would be lent to Ukraine for Kyiv to use for defense and regular budget needs.
This would provide welcome respite for EU governments, the biggest donors to Ukraine since Russia’s full-scale invasion in February 2022. Ukraine would pay back the 140-billion-euro loan only when it receives war reparations from Russia.
The latest version of the US-backed plan has not been released.
But under the US-backed plan that was presented last week, $100 billion of the frozen Russian funds would be invested in a US-led effort to reconstruct and invest in Ukraine, with the US getting 50 percent of the profits from this venture, according to details of the 28-point plan that were made public.
Under that plan, Europe would have to match the $100-billion contribution to increase the investment available to rebuild Ukraine while the balance of the frozen funds would be invested in a separate US-Russia investment vehicle to pursue joint US-Russia projects.
The Commission’s draft legal text is intended to help win the support of Belgium, where 185 billion euros of the 210 billion euros of assets frozen in Europe are located, because it would have to address in detail various legal guarantees that the Belgian government has demanded.
“We need to support Ukraine to defend itself. We committed ourselves to cover Ukraine’s financial needs in 2026 and 2027. This includes an option on immobilized Russian assets,” European Commission President Ursula von der Leyen told the European Parliament on Wednesday.
“The next step now is that the Commission is ready to present a legal text and, to be very clear, I cannot see any scenario in which the European taxpayer alone will pay the bill.”
WHY IS AGREEMENT SO HARD?
Among Belgium’s main concerns, which have to be addressed before EU leaders discuss the plan again on December 18, is the issue of potential Russian lawsuits against the Belgian securities depository Euroclear, where the assets are kept.
Such lawsuits could be costly, long-lasting or even launched years from now. The Belgian government wants other EU countries to guarantee it would not be left alone to cover the expense and financial fallout.
Similarly, should courts ever decide that Russia must get its frozen money back before Moscow pays reparations to Kyiv, Belgium wants others to guarantee they would help provide the money — and quickly.
While the Russian money remains frozen under a decision by EU leaders until Russia pays reparations, this decision needs to be renewed by unanimity every six months.
This creates a risk that Hungary, whose prime minister is closer to Moscow than other EU leaders, might refuse to roll over the sanctions and in this way automatically release the funds to Moscow.
Belgium and other EU governments want the Commission to come up with a way to prevent that before they approve the scheme.
Apart from the 185 billion euros immobilized in Belgium, there is an estimated 25 billion euros more of Russian sovereign money frozen in EU banks in various countries, mainly in France and Luxembourg.
Belgium says other countries that have Russian cash, including Canada, Japan, Britain and the US — all of which are members of the Group of Seven wealthy nations — should also be included in the scheme.
EU officials close to the talks between the Commission and Belgium are confident that all these concerns can be addressed one by one.
“But ultimately, it will be about political will,” the EU official close to the talks said.


Putin says there are points he can’t agree to in the US proposal to end Russia’s war in Ukraine

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Putin says there are points he can’t agree to in the US proposal to end Russia’s war in Ukraine

Russian President Vladimir Putin says some proposals in a US plan to end the war in Ukraine are unacceptable to the Kremlin, indicating in comments published Thursday that any deal is still some ways off.
US President Donald Trump has set in motion the most intense diplomatic push to stop the fighting since Russia launched the full-scale invasion of its neighbor nearly four years ago. But the effort has once again run into demands that are hard to reconcile, especially over whether Ukraine must give up land to Russia and how it can be kept safe from any future aggression by Moscow.
Trump’s special envoy, Steve Witkoff, and son-in-law Jared Kushner planned to meet later Thursday with the Ukrainian delegation led by Rustem Umerov following the Americans’ discussions with Putin at the Kremlin, but there was no immediate confirmation whether that meeting took place.
The meeting at the Shell Bay Club, a golf property developed by Witkoff in Hallandale Beach, was tentatively set to begin at 5 p.m. EST, according to an official familiar with the logistics. The official was not authorized to discuss the matter publicly because the meeting has not yet been formally announced and spoke on condition of anonymity.
Putin said his five-hour talks Tuesday with Witkoff and Kushner were “necessary” and “useful,” but also “difficult work,” and some proposals were unacceptable.
Speaking to the India Today television channel before he landed Thursday in New Delhi for a state visit, Putin said the American proposals discussed at the Kremlin meeting were based on earlier discussions between Russia and the US, including his meeting with Trump in Alaska in August, but also included new elements.
“We had to go through practically every point, which is why it took so much time,” he said. “It was a meaningful, highly specific and substantive conversation. Sometimes we said, ‘Yes, we can discuss this, but with that one we cannot agree.’“
Trump said Wednesday that Witkoff and Kushner came away from the marathon session confident that Putin wants to find an end to the war. “Their impression was very strongly that he’d like to make a deal,” he added.
Putin said the initial US 28-point peace proposal was trimmed to 27 points and split into four packages. He refused to elaborate on what Russia could accept or reject, and none of the other officials involved offered details of the talks.
The Russian leader praised Trump’s peace efforts, noting that “achieving consensus among conflicting parties is no easy task.”
“To say now what exactly doesn’t suit us or where we could possibly agree seems premature, since it might disrupt the very mode of operation that President Trump is trying to establish,” Putin said.
He emphasized that Russia will fulfill the goals it set and take all of the eastern Donetsk region. “All this boils down to one thing: Either we take back these territories by force, or eventually Ukrainian troops withdraw,” he said.
European leaders, left on the sidelines by Washington as US officials engage directly with Moscow and Kyiv, have accused Putin of feigning interest in Trump’s peace drive.
French President Emmanuel Macron met in Beijing with Chinese leader Xi Jinping, seeking to involve him in pressuring Russia toward a ceasefire. Xi, whose country has provided strong diplomatic support for Putin, did not say respond to France’s call, but said that “China supports all efforts that work toward peace.”
Russian barrages of civilian areas of Ukraine continued overnight into Thursday. A missile struck Kryvyi Rih on Wednesday night, wounding six people, including a 3-year-old girl, according to city administration head Oleksandr Vilkul.
The attack on Ukrainian President Volodymyr Zelensky’s hometown damaged more than 40 residential buildings, a school and domestic gas pipes, Vilkul said.
A 6-year-old girl died in the southern city of Kherson after Russian artillery shelling wounded her the previous day, regional military administration chief Oleksandr Prokudin wrote on Telegram.
The Kherson Thermal Power Plant, which provides heat for over 40,000 residents, shut down Thursday after Russia pounded it with drones and artillery for several days, he said.
Authorities planned emergency meetings to find alternate sources of heating, he said. Until then, tents were erected across the city where residents could warm up and charge electronic devices.
Russia also struck Odesa with drones, wounding six people, while civilian and energy infrastructure was damaged, said Oleh Kiper, head of the regional military administration.
Overall, Russia fired two ballistic missiles and 138 drones at Ukraine overnight, officials said.
Meanwhile, in the Russia-occupied part of the Kherson region, two men were killed by a Ukrainian drone strike on their vehicle Thursday, Moscow-installed regional leader Vladimir Saldo said. A 68-year-old woman was also wounded in the attack, he said.