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European Union leaders have gathered in Brussels for end-of-year talks facing a key choice on the use of frozen Russian Federation assets to strengthen the Ukrainian defence in the war against Russia.

“We have a simple choice: it's money now, or else blood in the future,” warned the Polish leader Donald Tusk. “This isn't just about Ukraine alone, this concerns Europe.”

The 27-member bloc is scrambling to fortify Ukraine's position while former U.S. President Donald Trump advocates for a quick settlement to halt the conflict as the war drags towards the fourth mark.

The Financial Crisis and the Proposed Plan

European officials calculate Ukraine requires an extra €135bn ($159bn) to stay afloat over the next two years, with the funding shortfall expected to begin in April. To fill this gap, the European Commission has put forward a scheme to tap approximately €210bn of Moscow's state reserves seized within the bloc.

German Chancellor Friedrich Merz argued the proposal was critical to increase pressure on Vladimir Putin and send “a strong signal to Russia.”

A Split Union: Opposition and Legal Doubts

However, a significant opposition bloc, spearheaded by Belgium—the home of the clearing house Euroclear, which holds the majority of the frozen funds—is raising questions about potential juridical challenges. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.

Technically, this group is not sufficient to veto the proposal should a vote be held under qualified majority rules. But in practical political terms, it makes the situation very awkward for everyone concerned.

There remains no sign of a middle ground, as the alternative pathway—relying on European Union debt—would require unanimity, and would almost certainly be obstructed by Hungary, which categorically rejects any additional help for Ukraine.

Leaders’ Statements Ahead of the Negotiations

EU leaders have insisted that the Brussels discussions will last for however long it takes to achieve an consensus, warning that Ukraine’s survival and the EU's standing are at stake.

• Ursula von der Leyen, the head of the EU executive, said she would not depart from the summit before an deal is reached.
• In a stark contrast, Slovak leader Robert Fico allegedly joked that they can keep him there until the new year, and he still wouldn’t support it.
• Ukrainian President Volodymyr Zelenskyy is scheduled to participate in the summit in a last-ditch effort to persuade the critics.

Strong Opposition from Budapest

The Hungarian leader Viktor Orbán was uncompromising, labeling the idea of utilizing frozen assets “stupid” and equivalent to “entering the conflict.” He expressed support for Belgium’s cautious stance.

Appeals for Unity and a Resolution

Several other leaders stressed the critical need for a decision.

• António Costa, European Council president, vowed: “We will work on this today, and if needed tomorrow, but we will never leave the Council before reaching a final decision.”
• Kaja Kallas, the EU’s foreign policy chief, noted that efforts to address Belgian worries and share the risk equally were continuing. She put the odds of a successful outcome at “fifty-fifty.”
• Micheál Martin, the Irish leader, stated his country was “strongly in support” of using the frozen assets.

The scene is prepared for a potentially long and strained bargaining session in the EU capital, with the future of significant monetary aid for a nation at war hanging in the balance.