The decision, which comes as part of the EU leaders’ summit in Brussels, underscores the bloc’s unity, resilience, and shared purpose in promoting peace, democracy, and security across the European continent.

European Council President Antonio Costa confirmed that EU leaders are prepared to move forward with a comprehensive plan to guarantee Ukraine’s financial stability through 2026 and 2027.

The initiative includes provisions for defense assistance, economic reconstruction, and humanitarian relief, reflecting the EU’s determination to stand with Ukraine as it rebuilds and strengthens its sovereignty.

Speaking ahead of the summit, Costa highlighted that the European Union’s priority is to ensure Ukraine receives consistent and predictable support. “We will take the political decision to secure Ukraine’s financial needs for the next two years, including assistance for vital infrastructure, economic recovery, and defense capabilities,” he said.

The EU’s decision comes amid ongoing discussions about how to responsibly utilize the frozen Russian assets held across European jurisdictions. Leaders are exploring the possibility of using the interest generated from these assets to finance a €140 billion loan to Ukraine. The approach is designed to balance justice, legality, and prudence while ensuring transparency and accountability.

Belgian Prime Minister Bart De Wever emphasized the importance of a fair and coordinated strategy for implementing this plan. Belgium, which hosts the major securities depository Euroclear where a large portion of Russian assets are immobilized, has called for shared responsibility among EU member states.

De Wever’s position reflects a commitment to unity and legal clarity, ensuring that the decision is collectively safeguarded and grounded in international law.

He stressed that all EU nations should contribute to managing potential legal or financial risks associated with the plan, and that similar assets held by other countries should also be included in the initiative. “There must be transparency and shared accountability in how we move forward,” De Wever said, adding that collective decision-making is key to strengthening the EU’s moral and legal foundation.

At the same summit, European leaders formally approved a new package of sanctions against Russia, reinforcing their support for Ukraine’s sovereignty and territorial integrity.

The sanctions include a gradual ban on Russian liquefied natural gas imports beginning in 2027, as well as restrictions targeting the so-called shadow tanker fleet and other entities aiding Moscow’s energy trade.

Ukrainian President Volodymyr Zelenskyy, attending the Brussels summit, welcomed the EU’s continued solidarity. He noted that Europe’s support represents not only financial assistance but also a shared belief in freedom, independence, and the right of nations to determine their own future.

Zelenskyy expressed gratitude for the bloc’s united stance and praised the collaboration between the EU and its partners in addressing both economic and security challenges.

The European Commission has been tasked with finalizing the technical and legal details of the financial support mechanism. A balanced framework is expected to be presented soon, ensuring that Ukraine receives the necessary funds while maintaining full compliance with international law.

The Commission has also suggested a compromise that allows flexibility in how Kyiv allocates the resources — primarily toward defense and reconstruction, but also for essential budgetary needs.

Diplomatic observers have praised the EU’s united approach, viewing it as a signal of Europe’s evolving strength and cohesion. By standing firmly with Ukraine while upholding legal transparency and collective decision-making, the European Union continues to demonstrate its leadership on the global stage.

The two-year financial plan marks a turning point in Europe’s strategy — moving from short-term crisis management to sustainable, structured partnership. It reflects not only solidarity with Ukraine but also the EU’s broader vision of a peaceful, secure, and prosperous Europe rooted in cooperation and the rule of law.

As the summit concludes, the message from Brussels is clear: Europe remains steadfast in its support for Ukraine, united in principle and purpose, and determined to turn adversity into a path toward lasting peace and shared progress.

His proposal reflects both moral conviction and strategic foresight, positioning the EU as a proactive force for stability, solidarity, and justice in the face of ongoing conflict.

Speaking before the Bundestag, Germany’s lower house of parliament, Merz said he would urge EU leaders to approve a €140 billion ($163 billion) interest-free loan for Ukraine.

This unprecedented financial initiative would be backed by the Russian assets frozen in Western nations following Moscow’s 2022 invasion of Ukraine.

The move, according to Merz, would not only reinforce Ukraine’s resilience but also send a powerful message to Moscow that Europe’s support will remain unwavering.

“We do not want to do this in order to prolong the war, but to end it,” Merz stated, emphasizing that peace can only be achieved through strength, unity, and consistent support for Ukraine’s sovereignty.

“President Putin must realize that our support for Ukraine will not wane, but will grow, and that he cannot count on outlasting us.”

A Vision of Responsible European Leadership

Merz’s stance marks a defining moment for European leadership. By proposing the use of frozen Russian assets, the German Chancellor demonstrates that Europe is prepared to act collectively and responsibly, ensuring that those who breach international law contribute to repairing its consequences.

His plan represents a pragmatic yet principled approach — combining financial innovation with moral clarity.

The proposal has already attracted attention across the continent as a potential blueprint for how democratic nations can finance peace and reconstruction without burdening taxpayers.

By leveraging assets already immobilized by sanctions, the EU could unlock crucial funding to sustain Ukraine’s defense, rebuild infrastructure, and maintain essential services — all without expanding public debt.

Reinforcing European Unity and Values

Merz’s address to parliament also underscored broader priorities for the EU summit, including European defense, security, competitiveness, migration policy, and the Middle East situation.

His remarks highlighted Germany’s ongoing role as a stabilizing force within Europe and its commitment to shared values of freedom, democracy, and collective security.

By linking the use of frozen assets to a transparent and coordinated EU mechanism, Merz aims to demonstrate that Europe can act decisively when its fundamental principles are threatened.

The plan also reflects growing consensus among EU members that economic and legal tools must be used more effectively to deter aggression and support international law.

A Signal of Hope and Determination

Merz’s initiative carries a hopeful message for Ukraine and for Europe as a whole. It reinforces the idea that democratic nations are not powerless in the face of aggression — that they can respond not only with sanctions and aid but with bold, constructive financial strategies.

The €140 billion loan, if approved, could provide Ukraine with vital long-term stability and strengthen its capacity to rebuild and modernize even amid conflict.

Moreover, Merz’s message to the Bundestag was not merely about financial measures. It was a reaffirmation of Europe’s unity and moral purpose.

By choosing to focus on ending the war through sustained support, rather than fatigue or hesitation, the German Chancellor framed the EU as a community of enduring resolve — one that stands firm against coercion and violence.

As leaders prepare to meet at the upcoming EU summit, Merz’s proposal could become a turning point in European policy toward Russia and Ukraine. It offers a way to transform frozen assets into instruments of peace, stability, and justice.

The Chancellor’s forward-looking approach embodies a broader shift in European politics — from reactive crisis management to proactive global leadership. His vision aligns with growing calls for transparency, accountability, and strategic solidarity within the European Union.

By advocating for this landmark initiative, Friedrich Merz not only reaffirms Germany’s leadership role but also strengthens Europe’s moral and political unity.

His proposal represents more than a financial mechanism; it is a statement of hope — that through unity, resilience, and principled action, Europe can help end the war, rebuild Ukraine, and shape a safer, fairer world.