EU summit to confirm financial aid plans for Ukraine in 2026-27 using frozen Russian assets

The European Council is set to reaffirm the EU's plans to provide financial and military assistance to Ukraine in 2026-27, partially funded by proceeds from frozen Russian assets.

EU leaders intend to formalise in the summit conclusions on 23 October their commitment to support Ukraine's financial needs over the 2026-27 period, including through the use of frozen Russian assets.

"The European Council is committed to finding ways to help address Ukraine's pressing financial needs for 2026-2027, in particular for its military and defence efforts.

To that end, the European Council plans to call on the European Commission "to present as soon as possible concrete proposals involving the possible gradual use of the cash balances associated with the immobilised Russian assets, in accordance with EU and international law, and underpinned by appropriate EU solidarity and risk-sharing," the draft European Council conclusions prepared for discussion at the EU General Affairs Council on 21 October reads.

The initiative to provide Ukraine with European Reconstruction Assistance (ERA) loans financed by windfall revenues from frozen Russian assets is to be maintained.

"Subject to EU law, Russia's assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by its war," it adds.

Belgium has meanwhile agreed not to block the EU's plan for a reparations loan to Ukraine funded through frozen Russian assets, paving the way for the union to begin implementing the initiative.

The Euroclear financial repository, which holds the frozen Russian assets, is based in Belgium. Brussels has expressed particular concern over the potential legal consequences of any decisions involving these assets.

The EU's defence roadmap presented by the European Commission states that the reparations loan mechanism using Russian funds should be approved by the end of 2025.

Bloomberg has reported earlier that the United States has not backed the EU's plan for the reparations loan to Ukraine.