After months of debate, EU leaders will decide on Thursday whether to use €210bn of frozen Russian central bank assets to fund Ukraine. The money is mostly held at Euroclear in Brussels. The EU plans to lend Ukraine €90bn, covering about two-thirds of Kyiv’s needs for 2026 and 2027. Ukraine would repay this loan only if Russia agrees to pay war reparations, and the EU would then repay Euroclear. These assets remain legally owned by Russia. Euroclear manages such assets for banks and institutions worldwide, holding €40.7tn in total. EU leaders had earlier agreed to use only the interest from these assets. But now, Germany’s Chancellor Friedrich Merz supports using the assets themselves to counter Russia’s threat. Meanwhile, US military aid to Ukraine has stopped under Donald Trump, and European countries struggle with economic pressures, leaving Ukraine short of funds. Kyiv needs €136bn for defense and civil expenses in the next two years to avoid bankruptcy. Russia calls the plan “theft” and warns of economic consequences. The Russian central bank has sued Euroclear for $230bn. Russia has also eased rules to seize Western assets in retaliation. Belgium, hosting most frozen assets, opposes the plan, calling it “fundamentally wrong” and fears legal retaliation, demanding full EU guarantees. Belgium also wants other countries with frozen Russian assets to share the burden. As an alternative, some suggest using unallocated EU budget funds as loan collateral for Ukraine, but this needs unanimous approval, which Hungary opposes. If no agreement is reached, EU credibility will weaken, says Merz, risking long-term damage to European unity. If the deal passes, EU leaders must still make it law quickly to meet Ukraine’s urgent needs. The cost to rebuild Ukraine runs over $524bn, and peace talks and border security remain complex issues.