as Ukraine continues to defend against Russian aggression,the question of sustained Western support has reached a critical juncture. EU foreign ministers convene in Brussels Monday, alongside ongoing peace talks in Berlin led by Ukrainian President Zelenskyy and U.S. envoys,to address a growing impasse over a proposed €210 billion financing package for Kyiv-one reliant on leveraging frozen Russian assets. The debate underscores deep divisions within the bloc, with a quartet of nations now challenging the plan and raising concerns about the future of aid to Ukraine as a pivotal EU summit looms this thursday.
Brussels is hosting a crucial meeting of EU foreign ministers Monday as diplomatic efforts intensify to find a path toward peace in Ukraine, coinciding with ongoing negotiations in Berlin between Ukrainian President Volodymyr Zelenskyy and envoys from the United States. The discussions come at a critical juncture for continued financial support for Ukraine, a matter facing increasing hurdles within the European Union.
“This is truly an intensive diplomatic week,” EU High Representative Kaja Kallas said upon arriving at the meeting. “We are working to finalize financing for Ukraine, but the proposed ‘reparations loan’ is meeting with growing resistance, not just from Belgium.”
Kallas acknowledged the challenges ahead, stating, “We haven’t reached an agreement yet, and it’s becoming more difficult, but we are continuing to work on it. We still have a few days.”
Disagreement Over Funding
The proposal centers on utilizing frozen Russian assets as collateral for loans totaling up to 210 billion euros to Ukraine in 2026 and 2027. However, Belgium, where the majority of the frozen assets are held by the Brussels-based Euroclear clearinghouse, has opposed the plan, calling for alternative funding solutions.
Over the weekend, Italy, Bulgaria, and Malta joined Belgium in demanding alternatives, and on Sunday, Czech Prime Minister Andrej Babiš also voiced his opposition to the proposal. The development highlights the deep divisions within the EU regarding how to finance Ukraine’s defense and reconstruction.
While a decision could technically be made with a qualified majority, Kallas believes proceeding without Belgium’s support would be politically difficult. “Without Belgium, I think it would be very difficult, as they hold the majority of the assets. I believe it’s important that they are on board, whatever we do,” she said.
Urgent Appeals from Ministers
Several foreign ministers emphasized the gravity of the situation Monday morning ahead of Thursday’s pivotal EU summit.
Swedish Foreign Minister Maria Malmer Stenergard called it an “epoch-making week for Europe” and expressed frustration that so many countries continue to object. “A decision must be made, and it is important that the EU also demonstrates the strength that such a decision would entail,” she said.
She added that a joint borrowing scheme – which requires unanimous agreement – is unrealistic, a sentiment echoed by her Danish counterpart. “All other proposals require unanimity, and we have a few brakes,” said Danish Foreign Minister Lars Løkke Rasmussen. “This is a pivotal week for Ukraine, but also for Europe.”
Günther Krichbaum, Germany’s representative at the EU meeting, also pointed to the difficulties. “The situation is anything but trivial. Ukraine needs our support. And those who refuse this must also be able to present alternatives. I haven’t yet received any proposal that I would call a brilliant idea. No, we must also finance Ukraine. The proposed model with the reparations loan is a model that can and should be pursued,” Krichbaum stated.
Intense Talks in Berlin
Alongside the meeting in Brussels, peace negotiations continued Monday in Berlin between Zelenskyy and U.S. President Donald Trump’s envoys, Steve Witkoff and Jared Kushner.
The talks, which lasted more than five hours Sunday, were described by Witkoff as productive. According to the Ukrainian presidential office, negotiations are set to resume Monday morning to discuss a revised peace proposal.
According to news site Axios, the Trump administration may be prepared to offer congressionally approved security guarantees similar to NATO’s Article 5.
Ukraine Signals Flexibility on NATO
Prior to the Berlin negotiations, Zelenskyy told reporters that Ukraine is willing to drop its requirement for NATO membership in exchange for strong security guarantees from the U.S. and European countries.
“Initially, Ukraine’s desire was to join NATO, these are real security guarantees. Some partners from the U.S. and Europe did not support this approach,” Zelenskyy said, according to Reuters.
He added that bilateral security guarantees akin to NATO’s Article 5 from the U.S., European countries, and others like Canada and Japan could prevent a new Russian invasion. “And that is already a compromise on our part,” Zelenskyy said.
This represents a significant shift, as Ukraine publicly signals a willingness to compromise on the NATO issue – a long-standing demand from Russia as a condition for peace.
Potential for Early EU Membership?
According to Financial Times, the latest draft also includes a proposal for Ukraine to join the EU as early as January 1, 2027, a timeline described as extremely ambitious.
“It is certainly ambitious, and I think everyone understands that, but it would also create hope in the Ukrainian population, which they certainly need,” said Malmer Stenergard, adding that accession must still be based on merit.
Kallas Warns Against Russian Tactics
The EU High Representative Kallas emphasized Monday that the goal must be a sustainable peace.
“The peace initiatives that have been made are, of course, very welcome, but it is also clear that we want a peace that lasts, a ceasefire that lasts, and also a sustainable peace,” Kallas said.
She continued: “For a sustainable peace, there can be no concessions to the aggressor. If aggression is rewarded, we will see more of it. We have seen this in history, and it is extremely important.”
Thursday Summit to Decide
The question of the reparations loan will be decided at the EU summit on Thursday, where the 27 heads of state and government will gather in Brussels.
European Council President António Costa has reportedly said that the leaders “will not leave the meeting until we get a result” before making a decision on financing for Ukraine, according to Kallas. Several EU diplomats who Politico spoke with described the situation as very strained, warning that further European disagreement would send a “devastating signal to Ukraine.”
Background: From 28 to 20 Points
The current diplomatic intensity stems from the U.S. presenting a controversial 28-point peace plan in late November, developed in consultation with Russia. The plan demanded Ukraine recognize Crimea and large parts of eastern Ukraine as Russian, limit its army to 600,000 soldiers, and constitutionally prohibit NATO membership.
Following strong criticism from both Ukraine and European leaders, European countries subsequently developed a counter-proposal, amending 12 of the 28 points to strengthen Ukraine’s position. Europe demanded, among other things, security guarantees equivalent to NATO’s Article 5 and a larger army of 800,000 soldiers.
At negotiations in Geneva, the U.S. and Ukraine agreed on a revised draft, first with 19 points and now with 20, leaving the most sensitive issues of territory and NATO relations for Presidents Trump and Zelenskyy to resolve at a later date.
