EU Weighs €140B Loan Using Frozen Russian Assets

EU leaders in Copenhagen debated a European Commission proposal to back roughly €140 billion in loans to Ukraine using frozen Russian central-bank assets held in Europe, as U.S. support wanes and the bloc seeks longer-term funding for 2026–27. Belgium—said to hold about €194 billion of the frozen assets—and Prime Minister Bart De Wever warned the plan is a “big gamble,” demanding written guarantees that all member states will share legal and financial risks if the scheme falters. The proposal faces major legal hurdles because international law bars outright confiscation of sovereign assets, so the Commission says any loan would use cash balances and be structured to respect Moscow’s claims while protecting participating states; the Kremlin has condemned the idea as theft. Several member states flagged legal and investor-risk concerns and urged time to resolve issues; the Commission said it will refine the plan to address Belgium’s concerns and spread risk, and leaders urged exploring alternative financing while details on guarantees, oversight and weapons procurement remain unresolved.