EU Council Debates Use of Frozen Russian Assets to Fund Ukraine Amid Member State Disputes

The December 2025 European Council meeting in Brussels centered on the contentious proposal to use frozen Russian assets to provide financial support to Ukraine's military efforts. German Chancellor Friedrich Merz, attending the summit, underscored the urgency of ending the war quickly, advocating for the allocation of these funds to Ukraine to enable access for at least two years. However, the proposal faces significant challenges due to divergent interests among EU member states.

Italy, led by Prime Minister Giorgia Meloni, has adopted a cautious and confrontational stance, questioning the financial, legal, and reputational risks of tapping into frozen Russian assets. Meloni demanded clarity on these issues and asserted that decisions of such magnitude must involve heads of state. She also linked her opposition to the controversial Mercosur trade agreement, which Italy views as jeopardizing its agricultural sector, asking for guarantees before granting support. Italy's position aligns with other countries like Belgium, Bulgaria, and Malta, all seeking alternatives to the credit loan model proposed for Ukraine funding.

Further complicating the talks are reports of pressure from the US government on select EU members to block the financing plan, adding an external layer of influence to the internal EU debates. Belgium has expressed reservations about the plan, contributing to the lack of consensus.

Beyond the Ukraine support discussions, the Council addressed security concerns due to increased drone activity across Europe, prompting calls for enhanced protective measures from Germany. Additionally, the EU approved new regulations simplifying the deportation process for asylum seekers to third countries, broadening the bloc's migration management capabilities.

This intense and multifaceted summit highlights the complexities of EU unity when balancing geopolitical support, economic interests, and security priorities. Chancellor Merz’s push reflects Germany's commitment to aiding Ukraine swiftly, but the diverging viewpoints among member states and external pressures indicate that reaching a consensus will require continued negotiation and compromise.