EU Pushes Plan to Fund Ukraine with Frozen Russian Assets

European Union leaders are racing to finalize a plan to use frozen Russian assets to secure a massive loan for Ukraine. The proposal aims to provide Kyiv with substantial, long-term funding as the war continues. The plan would use profits from frozen Russian central bank assets as collateral. This would allow the EU to borrow up to €50 billion on international markets for Ukraine. Officials warn that failure to agree on this deal would damage the bloc's credibility. It would signal an inability to act decisively on a critical security issue. The EU, U.S., and other allies immobilized roughly $300 billion in Russian state assets after the 2022 invasion. The EU's plan focuses on the profits generated by these frozen funds, not the assets themselves. All 27 member states must approve the proposal. Diplomats are negotiating final details ahead of a key summit next week.