Tree species BRUSSELS – European leaders aim to put on a show of support for Ukrainian President Volodymyr Zelenskiy in Brussels on Thursday after a rollercoaster few days that saw Donald Trump announce and then back away from plans to meet Russia’s Vladimir Putin.
At a summit meeting, leaders of the European Union are expected to meet Zelenskiy, reiterate backing for Ukraine’s territorial integrity and agree to develop a proposal to use frozen Russian assets for a big loan to Kyiv.
Zelenskiy will also receive a boost in the form of a new package of EU sanctions against Russia.
U.S. President Trump announced last week that he and his Russian counterpart would meet soon in Budapest, sparking concern among Kyiv’s European allies, but the planned summit was later put on hold. On Wednesday, the U.S. hit Russia’s major oil companies with sanctions.
Following a tense meeting between Trump and Zelenskiy at the White House last Friday, European leaders have been eager to show that Ukraine can still count on their support.
EU WORKING ON ‘REPARATION LOAN’
One sign of long-term support is a proposal by the European Commission to use Russian assets frozen in Europe to provide a 140 billion euro ($163 billion) “reparation loan” to Ukraine.
Under the plan, the EU would use cash balances from frozen Russian central bank securities to give Kyiv support that would cover much of its funding needs for 2026 and 2027.
To move forward with the proposal, leaders will seek to address concerns about legal and financial risks raised by Belgium, which holds the Russian assets in its Euroclear securities depository.
European governments have also begun wrangling over what conditions to impose on the loan.
Some want all the money to go to Ukraine’s military, with the bulk spent on European weapons. Others say Kyiv should be able to use some of the loan to buy U.S. arms and that the money could also be used for general budget support.
“While there is, I think, a fairly clear political will to move forward, there are still many questions,” said an EU diplomat, speaking on condition of anonymity.
KYIV WANTS FREE HAND WITH LOAN CASH
A senior official in Zelenskiy’s administration told Reuters that Ukraine needed the funds by the end of the year and autonomy over how to spend them.
The European Commission suggested a compromise whereby the majority of the loan would be spent on Ukrainian and European weapons but a smaller part would be for general budget support, which Kyiv could also use to buy arms from outside Europe.
As a next step, leaders are expected to task the European Commission to present a formal legal proposal.
Russia has described the idea as an illegal seizure of property and warned of retaliation.
EU countries approved a 19th package of sanctions against Russia late on Wednesday, after Slovakia dropped its block, and they are expected to formally adopt it on Thursday morning.
The package includes a ban on Russian liquefied natural gas from January 2027, as well as new measures on the so-called shadow tanker fleet and two independent Chinese oil refineries. REUTERS