European governments are working on an urgent plan to prevent Ukraine from running out of money early next year as internal disagreements continue over whether to use Russia's frozen assets to finance Kyiv.
Politico reported that European Union member nation leaders hoped last month to reach a deal on a proposal to tap immobilized Russian reserves for a $162.3 billion reparations loan to Ukraine.
That EU plan stalled after strong objections from Belgian Prime Minister Bart De Wever, whose country hosts most of the frozen funds.
With Ukraine warning that it could exhaust its financing in the first months of 2026, officials say the issue cannot wait.
European Commission President Ursula von der Leyen is expected to direct her staff to draft legal language for the reparations loan in the coming days.
Belgium remains concerned about legal exposure and the potential risk of retaliation from Moscow. With those concerns unresolved, policymakers in Brussels are examining fallback options if the reparations proposal cannot be finalized at an EU summit on Dec. 18.
One option drawing support is an EU-financed bridging loan to keep Ukraine afloat through the first part of 2026.
The temporary loan would give Brussels and member states more time to structure the larger reparations package in a way acceptable to Belgium. Diplomats say Ukraine could repay the bridge loan after receiving funds from the longer-term plan.
Another possibility involves combining the reparations proposal with additional joint EU borrowing.
Several member states remain cautious about such borrowing, and any agreement would require unanimous approval from all 27 EU countries. Hungary has repeatedly opposed new financial measures for Ukraine.
EU nations, including France, Germany, the Netherlands, Lithuania, and Luxembourg, pressed the commission this week to accelerate work on all financing options. French President Emmanuel Macron said a final plan to secure Ukraine's funding should be ready "in the coming days."
The reparations loan remains the preferred long-term solution, as most EU governments are unwilling to draw directly from their national budgets. But they acknowledge that Belgium's support is essential.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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