European leaders aim to endorse controversial plans to use Russian frozen assets to support Ukraine at a meeting in Brussels on Thursday.
The unprecedented proposal for what the EU has dubbed a reparations loan would see Kyiv receive €140 billion (£121 billion) worth of frozen Russian state assets held by Euroclear, a Belgium-based financial institution.
The plan has been months in the making due to legal complexities and concerns about global financial stability.
Belgium is particularly nervous about using frozen assets, fearing repercussions if Russia legally challenges Euroclear.
In response to the proposal, Russia expressed its anger, claiming it amounts to theft of the century and threatens Western financial stability.
As support from the U.S. dwindles, the EU faces increasing pressure to aid Ukraine, with total contributions around €177.5 billion (£154 billion) thus far. Ukraine's rebuilding costs are projected to exceed $486 billion (£365 billion; €420 billion).
The EU has previously utilized interest from frozen assets for Ukraine’s defense, totaling approximately €3 billion annually.
While some countries support the reparations loan initiative, others, like Hungary, voice objections due to potential fallout with Russia. There is also a significant debate regarding how Ukraine will allocate the funds.
Despite the challenges, the EU is moving forward with plans to draft a legal proposal should the reparations be approved.
