Ukraine pushes to revisit frozen Russian assets to close financing gap
Ukraine's Vice Prime Minister Vsevolod Chentsov said Kyiv is negotiating with the EU and other partners to cover its financing deficit for this year, including defense spending, and to develop a financial strategy for 2027. Speaking before an informal meeting of EU ministers for European affairs, Chentsov proposed revisiting the idea of using frozen Russian assets and suggested one possible solution could be front-loading an EU loan. He did not name specific figures for the deficit. Belgium has previously opposed using the assets without guarantees from all EU member states on the distribution of legal risks from potential Russian lawsuits; four EU member states have initiated a renewed discussion on the mechanism.
Key points
- Vice Prime Minister Vsevolod Chentsov made the remarks before an informal meeting of EU ministers for European affairs.
- Chentsov said Ukraine is negotiating with the EU and other partners to cover the financing deficit for this year, including defense spending, and a financial strategy for 2027.
- He did not name specific figures, saying work is ongoing to find sources of financing.
- Ukraine is proposing to revisit using frozen Russian assets to generate funds and cover the deficit.
- Chentsov called last year's proposal to use frozen Russian assets worth over 200 billion euros an ambitious idea and said revising the figures would be a first step toward bringing Belgium back into the dialogue.
- Chentsov said one possible solution could be providing financing under the EU loan earlier than planned.
- He stressed the importance of funds from other partners, which were planned to cover about one-third of Ukraine's financial needs for 2026 and 2027.
- Belgium opposes the mechanism unless it receives guarantees from all EU member states on equitable distribution of risks from potential Russian lawsuits.
- Four EU member states have initiated a renewed discussion on using frozen Russian assets for Ukraine's benefit.
Why it matters
Ukraine is confronting a significant financing gap, particularly for defense, and is looking to frozen Russian assets as one potential source alongside EU and partner support. Belgium's objections have stalled the frozen-asset mechanism, and four EU member states are now trying to reopen the discussion. The talks tie short-term financing for the current year to a longer-term financial strategy running through 2027, shaping Ukraine's ability to sustain its budget under wartime conditions.
What happened
Vice Prime Minister Vsevolod Chentsov, who handles European and Euro-Atlantic integration, spoke ahead of an informal meeting of EU ministers for European affairs. He said Ukraine is in talks with the EU and other partners to close the country's financing deficit for the current year, including defense spending, and to put together a financial strategy for 2027. He did not give a figure for the deficit, saying only that work to identify financing sources continues.
Chentsov proposed revisiting the use of frozen Russian assets, describing last year's proposal to tap assets worth over 200 billion euros as ambitious and suggesting that revising the figures would be the first step toward drawing Belgium back into the discussion. He pointed to front-loading an existing EU loan as one possible near-term solution and stressed that contributions from other partners, planned to cover roughly one-third of Ukraine's financial needs for 2026 and 2027, remain important. He added that guarantees for any such instrument might need to come from actors beyond the EU to address Belgium's concerns.
Chentsov declined to assess whether Belgium would reconsider its position, calling that an internal matter for the EU. Separately, Prime Minister Serhiy Koretsky has previously said Ukraine's defense budget carries a $27 billion deficit and that Kyiv is asking partners to cover it with emergency financing. Belgium has opposed the frozen-asset mechanism without guarantees from all EU member states on the equitable distribution of risks from potential Russian lawsuits; four EU member states have launched a renewed push to discuss the mechanism.
How Ukrainian sources describe it
Both Ukrainian sources center Chentsov's narrative, presenting his statements as the main event and emphasizing Ukraine's active negotiating efforts and the scale of its financing challenge. The coverage frames the push to revisit frozen Russian assets and to seek EU loan front-loading as part of Kyiv's effort to close a defense-budget gap estimated at $27 billion by Prime Minister Serhiy Koretsky, while acknowledging Belgium's concerns as an internal EU matter rather than as a barrier Ukraine should argue against directly.
Background
A previous proposal would have used frozen Russian assets worth over 200 billion euros. Other partners were planned to cover about one-third of Ukraine's financial needs for 2026 and 2027. Belgium's opposition centers on the equitable distribution of legal risks from potential Russian lawsuits linked to the mechanism.