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will issue Eurobonds as a temporary solution

kd December 19, 2025

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The European Union failed to approve the use of frozen Russian funds to finance Ukraine due to opposition from the Belgian prime minister.

The main obstacle was Belgium’s fear of reprisals from the Kremlin following a possible “confiscation” of the assets of the Central Bank of Russia.

As a temporary solution, the EU agreed to provide Ukraine with a loan of up to 90 billion euros, financed by the issuance of joint European debt.

Hungary, Slovakia and Slovenia, frequent allies of the Kremlin, have supported using the EU budget to issue Eurobonds in support of Ukraine.

resounding failure of the European Union’s plan to finance Ukraine with frozen Russian funds through a “reparation loan”, which Brussels intended to be the Kremlin who will pay the costs of the war.

After a marathon day of more than 15 hours of discussions, European leaders failed to overcome the resistance of the Belgian Prime Minister, Bart Weverwho fears reprisals from the Kremlin for what he himself described as a “confiscation” of the assets of the Central Bank of Russia.

Most of this money – 185 billion out of a total of 210 billion – is deposited in Euroclearthe financial company based in Brussels. Therefore, community leaders They did not dare to carry out the “reparation loan” with the vote against De Wevereven though they could legally do so.

As a temporary solution, the heads of state and government agreed to grant kyiv a loan of up to 90 billion euros for the next two years, which will be financed by an issue of common European debt using the EU budget as collateral.

In a surprising turn of events, Hungary, Slovakia and Slovenia The Kremlin’s closest allies in the EU have approved using the EU budget to issue Eurobonds, a move that requires the unanimous support of all 27 member states.