Europe Rallies Behind Ukraine Amid Trump Pressure, Eyes Frozen Russian Assets

Key Takeaways:

• Increased European Support: European governments are uniting behind Ukraine in the wake of pressure exerted on Zelenskyy by Trump.
• Frozen Russian Assets: Europe is seeking to reach an agreement on using frozen Russian assets to provide aid to Ukraine.
• Critical Brussels Summit: A forthcoming European summit aims to agree on providing €140 billion in loans to Ukraine.
• Divisions on Sanctions: European governments remain divided on imposing further sanctions on Russia.

In the wake of pressure from former U.S. President Donald Trump on Ukrainian President Volodymyr Zelenskyy to accept Russian President Vladimir Putin's terms for ending the conflict, European governments have rallied to support Kyiv and are accelerating efforts to reach an agreement on using frozen Russian assets to provide financial and military assistance to Ukraine.

EU foreign policy chief Josep Borrell warned on Monday that Trump's efforts to bring peace to Ukraine were welcome but noted a lack of genuine Russian desire for peace, emphasizing that the EU is exploring additional options for providing support.

Earlier, Zelenskyy attempted to rebut Putin's extreme demands, including ceding Ukrainian territory. Trump warned Zelenskyy that Putin threatened to "destroy" Ukraine if it did not comply and insisted that a peace deal was within reach when the U.S. and Russian presidents meet in Budapest in the coming weeks.

European leaders are scheduled to meet in Brussels next Thursday, and Zelenskyy is likely to attend the meeting. The meeting aims to reach an agreement on using frozen Russian assets to provide a €140 billion loan to Ukraine. German Prime Minister Friedrich Merz has suggested earmarking this amount to arm Kyiv.

During a meeting of EU foreign ministers in Luxembourg on Monday, ministers expressed strong support for Ukraine, emphasizing the need to reach an agreement on using frozen Russian assets and imposing a new round of sanctions on Moscow. Dutch Foreign Minister David van Weel stated: “The EU should give Ukraine a favorable initial position at the negotiating table by providing military assistance and exploring how these financial assets can be used to provide some financial relief.”

EU officials believe that Thursday's summit will give the European Commission the "green light" to submit a proposal to provide loans in tranches, with the funds to be used to purchase weapons. Hungarian Prime Minister Viktor Orban, known for his pro-Russian stances, will be absent from the first part of the summit agenda due to a national holiday, providing an opportunity for the other 26 leaders to reach an agreement in his absence.

French Foreign Minister Stéphane Séjourné told reporters that these funds would “provide Ukraine with resources that enable it to defend itself for at least three years.”

In remarks made to reporters on Monday, Zelenskyy said that his European counterparts had expressed their full support. He added: “We will meet this week. It is very important that a unified European position is formed with Ukraine.”

But Belgium said it would not agree to using these assets unless it guaranteed the participation of other member states in bearing costs in the event of successful legal challenges in Moscow.

The vast majority of frozen Russian assets are located in the central depository institution in Belgium, Euroclear. The Kremlin strongly condemned this month the idea of using frozen Russian assets to help Ukraine, describing it as an "illegal seizure of Russian property - or simply, theft" and threatened to take legal action.

Meanwhile, European governments remain divided over the next round of sanctions on Moscow, which include banning Russian liquefied natural gas from next January, but Slovakia opposes this unless it receives additional concessions. In addition to Slovakia and Hungary, other countries agreed on Monday to a complete phase-out of Russian gas by 2028.

EU Energy Commissioner Kadri Simson said the final ban would enable the EU to “achieve energy independence” and “equally important is to support Ukraine”.

Slovak Prime Minister Robert Fico said Slovakia would not give up its veto unless the European Commission pledged to take action to lower energy costs and support the group's struggling car industry.

To placate Slovakia, European Commission President Ursula von der Leyen has proposed reviewing the historic ban on internal combustion engines in new cars by 2035 before the end of this year, and helping to mitigate high energy costs. But diplomats said Slovakia has not backed down after the proposal was made.

Western leaders in the “coalition of the willing” will also hold a call with Zelenskyy on Friday to discuss providing further military support. After Trump refused last week to supply Ukraine with long-range “Tomahawk” missiles, Zelenskyy expressed hope that European allies would come forward, noting that “this type of weapon is not exclusive to the United States”.

Zelenskyy said: “If the United States takes a step forward, the Russians will understand that I can also arrange ‘Tomahawk’ and other necessary weapons in Europe.” He added that he briefed European leaders “immediately after his meeting with President Trump”. “They also want to make such requests to him personally. We maintain continuous coordination.”