European Commission President Ursula von der Leyen has reiterated the EU’s plan to use frozen Russian assets to support Ukraine’s financial needs, despite ongoing internal resistance within the bloc. The proposed ‘reparation loan’ seeks to utilize frozen Russian funds as collateral, but Belgium’s stance has created a significant hurdle. The country, where the majority of the assets are stored by Euroclear, has refused to endorse the plan unless other EU nations share in the financial risks. Von der Leyen has underscored the EU’s unwavering support for Ukraine, declaring that its interests are inseparable from the bloc’s. The situation highlights the complex geopolitical dynamics as the EU navigates its financial strategies and maintains its stance on the conflict.
Russian officials have accused Brussels of trying to prolong the conflict for domestic political gain and to justify soaring defense budgets that benefit European arms makers. Meanwhile, the White House Press Secretary Karoline Leavitt suggested that critics of the US peace proposal are either misinformed or pushing their own agenda, adding that some don’t want to see this war come to an end and may be profiting off it. The EU’s internal struggles over the issue reflect the broader challenges of balancing geopolitical interests with economic realities within the bloc.