EU leaders commit to addressing Ukraine’s financial needs, stop short of using Russian assets for loan

Meeting on October 23, European Union leaders committed to address Ukraine’s pressing financial needs for 2026-2027 and invited the European Commission to present options for financial support, according to a statement after the day’s meeting of the European Council.

However, they stopped short of approving the release of 140 billion euro in frozen Russian assets to provide a loan to Ukraine to bolster that country’s defence industry.

A decision on the use of the Russian frozen assets was postponed to the December meeting of the European Council, with the postponement the result of Belgian Prime Minister Bart de Wever opposing the move.

The European Council statement said that subject to EU law, “Russia’s assets should remain immobilised until Russia ceases its war and compensates Ukraine for the damages caused by it”.

“The European Council will revert to this issue at its next meeting,” the statement said. The next regular meeting of the European Council is scheduled for December 18 and 19.

The EU remains steadfast in its solidarity with and support for Ukraine, the statement said.

It said that to date, the EU and its member states have provided 177.5 billion euro in support for Ukraine.

“Despite sustained US and European diplomatic efforts towards peace, Russia has increased the intensity of its missile and drone attacks on Ukraine, thereby showing a lack of real political will to end its war,” the statement said.

“In this regard, EU leaders called on Russia to engage in meaningful peace negotiations and to agree to an immediate ceasefire, to which Ukraine had already agreed in March 2025.”

A Ukraine capable of defending itself effectively is an integral part of any future security guarantees, the statement said.

The EU is ready to contribute in this regard, including by supporting Ukraine’s ability to deter aggression. To this end, EU leaders welcomed efforts to revise the mandates of EU advisory and military assistance missions to Ukraine.

They also stressed the importance of providing equipment and training to the Ukrainian Armed Forces,air defence and anti-drone systems, and large-calibre ammunition.

With regard to Ukraine’s defence industry, the leaders called for work on further support and investments to be speeded up and stressed the importance of closer cooperation with Europe’s defence industry, the statement said.

It said that EU leaders reaffirmed the EU’s steadfast support for Ukraine’s EU membership, and welcomed the significant progress Ukraine has made in this regard, despite the challenging circumstances.

“In this context, they encouraged Ukraine, the Commission and the Council to move ahead on the accession process, in line with the merit-based approach. They also noted the Commission’s assessment that the negotiation clusters on the fundamentals, internal market and external relations are ready to be opened,” the statement said.

(Photo: EC Audiovisual Service)