On 3 December 2025, the European Commission unveiled a package of five legislative proposals underpinning two possible options for funding Ukraine in 2026 and 2027: a reparations loan, borrowing cash balances from banks and other financial companies holding immobilised Russian Central Bank assets; or joint EU borrowing, guaranteed by the 'headroom' in the EU budget. These proposals form the basis for discussions at the 18-19 December European Council meeting. Without new additional financial support from the EU and other international donors, Ukraine is expected to run out of funds early in 2026. The value of Russian assets immobilised worldwide is estimated at around €300 billion. The European Parliament has repeatedly demanded those assets be used to support Ukraine's defence against Russia's occupation forces. At the same time, Russian assets have become a major point in discussions towards a peace plan, escalating the pressure on the EU to take a decision. Belgium continues to resist use of the immobilised assets and recently received support from other Member States, such as Italy and Bulgaria, on that issue. Hungary has voiced opposition to any further support for Ukraine, blocking the option to use the 'headroom' of the EU budget, which would necessitate a unanimous amendment. If both options proposed by the Commission are blocked, a 'coalition of the willing' could be the option of last resort. Source : © European Union, 2025 - EP Read more