Ukrainian President Volodymyr Zelensky has issued a stark warning to European Union leaders, stating that failure to approve a critical $105 billion loan will severely damage Ukraine's war effort. He cautioned that Kyiv would be forced to drastically reduce drone production by spring, undermining its defence against Russian advances and weakening its position in negotiations with Washington.
Battlefield Consequences of Funding Delay
The urgent plea came as EU leaders gathered in Brussels on Thursday, December 18, 2025, to debate the massive loan package. According to Zelensky, without the funds, Ukraine's long-range strike capability against Russian targets "would disappear." This is a critical blow, as drones have been a cornerstone of Ukraine's strategy to hold off Russian forces while it addresses manpower shortages.
Ukraine has effectively used drones to launch frequent strikes on Russian energy facilities and military logistics, slowing Moscow's offensive. A significant cut in production would cripple this asymmetric advantage, leaving Ukrainian troops more vulnerable on the front lines where they face intense pressure.
Belgium's Stance and the Russian Asset Dilemma
The loan proposal, however, faces significant hurdles. The strongest opposition comes from Belgium, whose Prime Minister, Bart de Wever, has repeatedly voiced concerns. The core issue lies with Euroclear, a Belgian financial institution holding approximately $213 billion in frozen Russian central bank assets.
The proposed EU loan would use profits from these frozen assets to fund Ukraine. Belgium fears being left financially liable if Russia successfully challenges the move in court. De Wever has also cited personal and national security threats from Moscow if he approves the plan. "You need a parachute before jumping," de Wever told the Belgian parliament, indicating a need for binding guarantees for Belgium. "If we are asked to jump, we all jump together."
Impact on US-Led Peace Negotiations
Zelensky directly linked the EU's financial support to Ukraine's leverage in ongoing, difficult peace talks with the United States. He argued that the loan would make Kyiv "more confident at the negotiating table," demonstrating its capacity to continue fighting if a proposed deal favours Russia.
Kyiv is under intense pressure from the Trump administration to agree to withdraw from a fortified section of the eastern Donbas region still held by Ukrainian troops. The EU loan is seen as essential to counterbalance this pressure and fill the funding gap left after Washington withdrew support earlier this year.
EU leaders acknowledged the decision was hanging in the balance, with top officials prepared to extend the summit for days to reach an agreement. The International Monetary Fund estimates the loan could cover two-thirds of Ukraine's budget and military needs for the next two years, with repayment conditional on Russia paying war reparations.
