The United States has reversed its earlier call for the EU to use frozen Russian assets to aid Kyiv, now opposing such use amid Trump administration negotiations, prompting EU leaders to press back.
U.S. reverses stance on Russian assets
Previously, the United States urged the European Union to tap frozen Russian funds to support Kyiv. After Washington’s proposal to finance Ukraine’s post‑war reconstruction with those assets, the Trump administration now objects to using them for a reparative credit, as reported by The Moscow Times.
EU leaders demand U.S. compliance
European officials insist the issue of Russian reserves is a purely European matter. Chancellor Friedrich Merz warned on Thursday that no money should be left to the U.S. and that the EU must reach agreement on a reparative credit before the December 18 summit, according to Financial Times sources in the German government.
EU Commission proposes €90 billion reparative loan
The European Commission on Wednesday presented a plan for Ukraine’s financial support: a reparative loan backed by frozen Russian assets, or debt issued on the market guaranteed by the EU budget. The package amounts to €90 billion, covering roughly two‑thirds of Ukraine’s needs over the next two years, as stated by Ursula von der Leyen.
Belgium opposes loan mechanism
Belgium, which holds nearly €180 billion of frozen Russian assets on a Belgian settlement company’s accounts, protests the loan proposal. Its officials fear potential retaliation from Russia, such as lawsuits and multibillion‑euro damages, though the European Commission says safeguards are in place. Belgium’s opposition is the loudest.
Russia threatens retaliation
Responding to the European proposals, Russia warned it could retaliate if the EU uses the frozen assets. Russian MFA spokesperson Maria Zakharova described the proposal as “abnormal” and said Ukraine would have to repay between €185‑210 billion after the war if Russia pays reparations, though concrete retaliation plans remain unspecified.