European Union leaders begin two days of talks in Brussels with a momentous decision to be taken on whether to loan tens of billions of euros in frozen Russian assets to Ukraine to fund its military and economic needs.
Most of Russia's €210 billion (£185 billion; $245 billion) worth of assets in the EU are held by Belgium-based organisation Euroclear, and so far Belgium and some other members of the bloc have expressed opposition to using the cash.
Without a boost in funding, Ukraine's finances are projected to run dry in a matter of months. One European government official described being 'cautiously optimistic, not overly optimistic' about reaching an agreement. Meanwhile, Russia has issued a warning against the use of its money, having initiated a lawsuit in a Moscow court to reclaim its assets.
The Brussels summit comes at a pivotal moment, coinciding with US President Donald Trump's assertion that a potential deal to end the war in Ukraine is 'closer now than we have been ever'.
However, the Kremlin has remained non-committal on recent peace proposals and has criticized the idea of a European-led multinational force assisting Ukraine.
As discussions unfold, there is a divide among EU leaders on the loan proposal. The European Commission has suggested loaning Kyiv about €90 billion (£79 billion) over the next two years from the frozen assets, an amount that constitutes roughly two-thirds of what Ukraine is estimated to require for 2026 and 2027.
Belgium and other nations worry about the implications of taking such actions, as they would require a majority vote of member states to proceed. The urgency of the humanitarian situation underscores the gravity of this negotiation.
As talks continue, the ramifications of their decision will ripple through the region, impacting Ukraine's ability to sustain its defense and economy in a protracted conflict.
