Ukraine Urges Political Decision from EU on Frozen Assets in December
- Ukraine pressed European allies to approve a $163‑billion loan from frozen Russian assets at a December summit
- Officials warned that Kyiv faced a looming budget gap in 2026 and risked running out of funds early next year
- European leaders remained divided, with Brussels outlining alternative financing options as Russia threatened a “painful response”
Ukraine has been pushing European allies to take a political decision next month on a proposed $163-billion loan based on frozen Russian state assets.
Officials in Kyiv said the funds were urgently needed to plug a looming gap in the 2026 wartime budget and to offset the fallout from an unfolding corruption scandal.
Source: UGC
European leaders failed to reach agreement on the so-called “Reparations Loan” last month. They are expected to revisit the issue at a summit scheduled for December 18, which Ukrainian officials described as the last chance this year for Europe to act.
A senior official in President Volodymyr Zelenskiy’s administration told Reuters that Ukraine would require its first major injections of financial support from the second quarter of 2026. Russia warned that any move to release the loan would elicit a “painful response”.
Kyiv calls for joint decision-making
Iryna Mudra, a top legal adviser in Zelenskiy’s administration, said in an interview: “We don’t expect all technical details to be finalised by that time, but the architecture for issuing the loan must be agreed.”
She explained that Ukraine expected its European allies to define the structure and governance through which the funds would be provided. Mudra stressed that it was vital for Ukraine to be directly involved in decisions on how to allocate and prioritise the money.
“Without Ukraine’s direct involvement, assistance risks becoming ineffective only because we know the real needs on the ground, but the decision should be taken together with our partners, definitely,” she said.
Wartime budget concerns
Economic analysts warned that Ukraine could run out of money during the first quarter of next year if new European assistance did not materialise. With little clear prospect of direct U.S. aid under President Donald Trump, Kyiv’s reliance on European support has grown.
EU leaders agreed last month to meet Ukraine’s “pressing financial needs” for the next two years. However, they stopped short of endorsing the plan to use frozen Russian assets to fund the loan, after Belgium raised concerns.
Source: Getty Images
Von der Leyen outlines financing options
On Monday, European Commission President Ursula von der Leyen told European governments in a letter seen by Reuters that there were three possible options to finance Ukraine. She said a combination of them was also possible.
Apart from the proposed loan, the options included European Union countries providing grants and the bloc borrowing on markets.
According to the document, Ukraine’s remaining needs for 2026-2027 were estimated at 135.7 billion euros ($157.37 billion).
Zelenskiy secures Rafale jets for Ukraine’s defence
Legit.ng earlier reported that Ukraine signed a letter of intent with France to obtain 100 Rafale warplanes over the next decade, President Volodymyr Zelenskiy announced on November 17, 2025.
The move was presented as part of Kyiv’s long-term plan to strengthen its military capacity against Russia’s ongoing invasion.
Zelenskiy visited Paris for talks with President Emmanuel Macron at a time when Russian drone and missile attacks on Ukraine had intensified and Moscow reported ground advances in the southeastern Zaporizhzhia region.
Source: Legit.ng
