Putin hits Europe along with his most feared weapon… his legal professionals: EU bid to make use of frozen Russian belongings could possibly be scuppered as leaders concern they could possibly be compelled to pay the cash again after the battle
Vladimir Putin has turned to his most feared weapon, an army of lawyers, as Europe’s attempt to use frozen Russian assets hangs in the balance amid fears leaders could be forced to repay the money after the war.
EU leaders are due to meet in Brussels on Thursday for a crunch summit on plans to use frozen Russian assets to support Ukraine, with Belgium facing growing pressure to abandon its opposition.
The 27-member bloc is racing to bolster Kyiv as the conflict edges towards a fourth year and US President Donald Trump urges a rapid settlement to end the war.
Russia has already fired a shot across the bows by announcing it was suing Euroclear.
Belgium, where international deposit organisation Euroclear holds the vast bulk of the funds, has been firmly opposed due to fears it could face crippling financial and legal reprisals from Moscow.
Russia’s central bank, which filed a lawsuit against Euroclear, accused it of making it ‘impossible to access funds and securities belonging to the Bank of Russia’ through what it described as illegal actions, and said it would seek damages equivalent to the value of the blocked assets, frozen securities, and lost investment income.
Ahead of Thursday’s meeting, diplomats said discussions will continue for as long as necessary to reach a deal, warning the outcome will test both Ukraine’s ability to survive and Europe’s standing on the world stage.
‘If we do not succeed in this, then the European Union’s ability to act will be severely damaged for years,’ German Chancellor Friedrich Merz said this week.
‘We will show the world that we are incapable of standing together and acting at such a crucial moment in our history.’
Vladimir Putin has unleashed his lawyers against the EU to stop leaders from using frozen Russian assets as a loan to help Ukraine in the war
Rescuers work at a site after a Russian air strike. Some EU leaders fear that there will be financial repercussions if Ukraine is handed the funds
Brussels estimates Ukraine, whose President Volodymyr Zelensky is expected to attend the talks, needs a further €135 billion over the next two years, with a funding shortfall looming from April.
To help cover the gap, the European Commission has proposed accessing around €210 billion in Russian central bank assets frozen across the EU.
The proposal would see €90 billion released to Ukraine over an initial two-year period through a legally untested arrangement, under which the EU would borrow the funds before lending them on to Kyiv.
Ukraine would only begin repaying the so-called reparations loan once Moscow compensates for the damage caused by its invasion.
Belgium’s outspoken prime minister Bart De Wever will be in the spotlight as his EU counterparts – most of whom back the plan – try to cajole him to accept.
EU officials say they have gone out of their way to allay Belgian worries and that multiple layers of protection – including guarantees from other member states – mean the risks are minimal.
But so far Flemish nationalist De Wever has only dug in further, insisting that any guarantees must be unlimited and assets frozen in other countries should be used too.
In theory, other EU countries could override Belgium and ram the initiative through with a weighted majority but that would be a nuclear option that few see as likely for now.
Paramedics carry an injured man into a medical van after a Russian attack on civilians. EU leaders say the plan will help Ukraine defend itself against Russia
‘These are complex decisions that cannot be forced,’ said Italian premier Giorgia Meloni, who could offer key political cover for Belgium.
The commission has floated a potential fallback plan of the EU raising the money itself to lend to Ukraine.
But officials say that scheme has been shelved as it requires unanimous approval from the EU’s 27 leaders and Hungary has ruled it out.
De Wever nonetheless looks set to try to revive that idea, and other countries may be open to his arguments.
‘It is on the shelf, not in the bin,’ said one EU diplomat, speaking like others on condition of anonymity. ‘But we are focused now on the reparations loan.’
Bubbling close to the surface of the EU’s discussion are the US efforts to forge a deal to end the war.
US and Russian officials are set to meet in Miami this weekend to discuss Trump’s peace plan, a White House official told AFP on Wednesday.
Trump’s roving envoy Steve Witkoff and son-in-law Jared Kushner are expected to take part on the US side, while Putin’s economic envoy Kirill Dmitriev is set to be in the Russian delegation, Politico reported.
US president Donald Trump in an address to the nation on December 17. The leader and his envoys have been racing to find a solution that would end the war in Ukraine
Ukraine has stated that Washington is ‘pressuring’ the EU not to use the assets, as they view them as a vital bargaining chip in winning over Russia.
However, EU officials deny this and claim that, if anything, the push for peace has actually spurred efforts to tap Russian funds.
Given that Ukraine has only months before the shortfalls bite, diplomats and officials insist leaders will find a way to keep funds flowing – even if this week yields only a loose deal with details to be hammered out later.
‘We need to find a solution,’ said a second EU diplomat. ‘I’d be surprised if they break up on Saturday or Sunday without a decision.’
Meanwhile, Kremlin official Dmitry Medvedev also warned that Putin could use the EU’s proposals as a justification for war.
