European leaders are preparing a framework whereby frozen Russian assets will not be ‘confiscated’ but will serve as ‘collateral for loans’ to Ukraine. Kyiv would have to repay these amounts later if Moscow cooperates with reparations. This wording aims to avoid legal problems and economic repercussions in international payment systems.
The amount involved ranges between 140 and 210 billion euros of Russian money. The European Commission could issue bonds, using the Russian funds as collateral. Several EU countries are willing to support this model, provided the money is mainly allocated to Defense. However, Hungary is challenging the plan at the European Court, feeling sidelined in previous votes.
Alongside financing, expansion of military support is central. An agreement has been reached to allocate two billion euros for drones for Ukraine. These will contribute to a large-scale defense barrier along the Union’s eastern border, aimed at protection against Russian attacks.
The idea of a “drone barrier” is gaining ground in Brussels and several EU countries. The barrier would be built of detection and defense systems and is intended to better secure the airspace. With this, the EU wants to demonstrate that support for Ukraine is not limited to financial packages but also includes tangible military reinforcement.
Another contentious point concerns the pending accession of Ukraine to the European Union. So far, countries like Hungary and Slovakia could block this process with a veto. Now, a proposal is on the table to change the procedure: a qualified majority could decide to hold negotiations ‘by chapter,’ while unanimity would still be required for a final comprehensive report (at a much later stage).
This model limits the power of individual member states but preserves their final decision. Supporters see this as a balanced way to maintain momentum without ignoring the interests of all countries. Opponents fear it would undermine national sovereignty.
The informal meeting of EU leaders in Copenhagen is the prelude to the summit at the end of October, where formal decisions are expected. The success of the summit depends on whether compromises can be found in the coming weeks.
If agreement is reached, the EU would take an important step in its support for Ukraine: not only financially and militarily but also institutionally by accelerating the accession process.