European Union envoys are fine-tuning a plan to use frozen Russian assets as collateral for a massive loan to support Ukraine over the next two years.

Ukraine and its European allies may be enthusiastic about the Trump administration’s shift in their direction, but when America shores up its gap with Europe, it widens its gap with Russia. And it is,

Unveiling her plan on Dec. 4, European Commission President Ursula von der Leyen said the EU would cover two-thirds of Ukraine’s needs for 2026 and 2027, for a total of 90 billion euros ($105 billion). International partners would fill the gap.

Two days of talks between President Volodymyr Zelensky and allies have brought some progress on security guarantees, but Russia remains opposed to any foreign forces in Ukraine.

Ukrainian Foreign Minister Andrii Sybiha has stressed the importance of the EU taking a decision this week to provide Ukraine with a reparations loan using frozen Russian assets. Source: Sybiha on X (Twitter),

European Union member states have approved nearly $2.7 billion in funding for Ukraine as part of a plan to bolster the war-besieged nation's recovery, reconstruction and modernization.

The European Union on Friday indefinitely froze Russia’s assets in Europe to ensure that Hungary and Slovakia, both with Moscow-friendly governments, can’t prevent the billions of euros from being used to support Ukraine.

European officials are growing concerned that an emerging US-brokered peace deal in Ukraine could be exploited by Russia, paving the way for a re-invasion of territory in the war-battered nation’s eastern Donbas region.

Germany is undergoing a significant military rearmament. The change has been driven by the ongoing war in Ukraine and U.S. pressure on Europe to shoulder more of its defense.