European Union leaders will meet in Brussels on Thursday, aiming to agree on how to fund Ukraine’s economic and military needs in the coming years.

The most hotly debated financing model involves using Russian state assets frozen under EU sanctions to fund a loan to Ukraine, which Kiev would repay only if Russia makes reparations after the war.

The European Commission has proposed providing Ukraine with €90 billion ($105.4 billion) in tranches to cover its financial and military needs in 2026 and 2027, as well as an additional €45 billion to repay other loans granted to Kyiv over the past years.

Belgium, which holds roughly €185 billion of the total €210 billion in Russian assets frozen in the EU, opposes the plan, citing legal and financial risks.

The Belgian government fears in particular that Moscow could retaliate against European private individuals and companies, for example, through expropriations in Russia, and is calling for safeguards.

Belgian Prime Minister Bart De Wever has been demanding legally binding and unconditional guarantees from other EU countries covering the entire loan amount, as well as protection against any potential claims for damages.

A so-called qualified majority of at least 15 of the EU’s 27 states, representing 65 per cent of the bloc’s population, is needed to approve the loan, but it is considered unlikely that other EU countries would be willing to outvote Belgium.

Negotiations are expected to run into overtime with EU leaders likely staying in the Belgian capital until Friday.

Ukrainian President Volodymyr Zelensky plans to join the summit as a guest.

Besides Ukraine, EU leaders will also debate the bloc’s next long-term budget for 2028 to 2034 and set the direction for upcoming negotiations.

Following a meeting with Western Balkan nations, EU leaders are to discuss the progress made by the bloc’s aspiring members in the accession process.

Talks on the geo-economic situation and economic challenges facing the EU, including faltering competition, are also on the agenda.

On the sidelines of the summit, EU countries could reach an agreement to sign the free trade agreement with the four Latin American Mercosur countries, Brazil, Argentina, Uruguay, and Paraguay.

(dpa/NAN)