EU Pushes for Seat at Ukraine Peace Table as Frozen Assets Debate Intensifies
The European Union is scrambling to secure a meaningful role in emerging peace negotiations for Ukraine while simultaneously grappling with internal divisions over using frozen Russian assets to finance Kyiv's war effort and reconstruction. As diplomatic efforts intensify in December 2025, the bloc finds itself caught between American-led peace initiatives and growing pressure to convert immobilized Russian funds into tangible support for Ukraine.
Diplomatic Race Against Time
EU foreign policy chief Kaja Kallas has described the current week as potentially "pivotal for diplomacy" in ending Russia's war in Ukraine. "This week could be pivotal for diplomacy. It is clear that Russia does not want peace, and therefore we need to make Ukraine as strong as possible," Kallas stated on social media ahead of crucial meetings in Brussels.
The urgency comes as the United States pushes forward with its own 28-point peace proposal that initially favored Moscow, calling for Ukrainian withdrawal from eastern territories and de facto recognition of Russian-occupied regions. European leaders have expressed alarm at being sidelined from these negotiations, with Ukrainian President Volodymyr Zelenskyy stating it was "not fair" to exclude European allies from reconstruction talks.
French President Emmanuel Macron has been particularly vocal about European inclusion, asserting that "a plan between Russia and Ukraine to end hostilities can only be finalised with the involvement of Kyiv and European powers." His German counterpart, Chancellor Friedrich Merz, echoed this sentiment, emphasizing there must be "no dictated peace" in Ukraine.
The Frozen Assets Dilemma
At the heart of the EU's internal struggle lies approximately €210 billion in frozen Russian central bank assets, most held by the Brussels-based financial clearing house Euroclear. The European Commission has proposed using these immobilized funds as collateral for a "reparations loan" of up to €140 billion to support Ukraine's economy through 2026-2027.
However, Belgium - where most assets are physically located - has emerged as the plan's most vocal opponent. Belgian Prime Minister Bart De Wever has called the loan scheme "fundamentally wrong" and warned it could violate international law while creating instability in global financial markets. "There is a real risk that the EU would ultimately be forced to repay the funds," De Wever cautioned in a letter to European Commission President Ursula von der Leyen.
The European Central Bank has further complicated matters by refusing to act as lender of last resort for the scheme. According to Financial Times reports, the ECB stated this would likely violate treaties prohibiting monetary financing.
Geopolitical Stakes and Russian Threats
Russia has responded to the EU's asset plans with escalating threats. Dmitry Medvedev, deputy chairman of Russia's Security Council, warned that Europe's plan to use frozen Russian assets could be considered justification for war under international law. "If the EU attempts to use frozen Russian assets held in Belgium through a 'reparations loan,' such actions could be classified as a 'special kind of casus belli' (act justifying war)," Medvedev stated, according to CNBC.
Meanwhile, military developments continue to pressure diplomatic timelines. An analysis by Agence France-Presse of data from the US-based Institute for the Study of War shows that Russian forces made their biggest territorial advances in a year during November 2025, capturing approximately 701 square kilometers.
Alternative Financing and European Unity
Facing Belgian opposition and ECB reluctance, the European Commission has outlined alternative options. These include using wiggle room in the EU's central budget to raise money on capital markets or having member states jointly borrow the funds. However, EU officials warn both alternatives would incur greater costs for national budgets already under strain.
Support for using frozen assets remains strong among many member states. Poland's Deputy Defence Minister Paweł Zalewski endorsed the EU's plan after meetings in Brussels, while Spanish Prime Minister Pedro Sánchez announced support for using Russian frozen assets during Zelenskyy's recent visit to Madrid.
Portugal's Finance Minister Joaquim Miranda Sarmento captured the complex balancing act facing the EU: "We support, from a general point of view, the creation of a loan based on frozen Russian assets. But this is a complex issue with technical aspects to be resolved, not least because Belgium is demanding clear guarantees."
December 18 Summit: Decision Time
All eyes now turn to the December 18 EU leaders summit, where member states must decide whether to proceed with the frozen assets plan or pursue alternative financing mechanisms. The decision carries profound implications not only for Ukraine's immediate survival but for Europe's geopolitical standing and financial stability.
As Kallas noted in a recent interview with El País, "We should stop pretending that Russia is negotiating peace and force it to do so." Her words underscore the high-stakes diplomatic and financial calculations facing European leaders as they navigate one of the most complex geopolitical challenges of the decade.