EU countries seek urgent plan B to fund Ukraine

European countries are working on an emergency plan B to stop Ukraine running out of money early next year in case they cannot reach a deal on raiding Russia’s frozen assets to fund Kyiv’s war effort.

So policy specialists in Brussels are now turning to how to help Ukraine in the event that the reparations loan proposal does not come together in time for EU leaders to sign off on it at a summit on Dec. 18.

One option gaining support is for a “bridging” loan, financed by EU borrowing, to keep Ukraine afloat during the first months of 2026, according to four officials. That would allow more time to set up the full reparations loan using the Russian assets in a way that Belgium can live with (these funds are held in Belgium., to provide a longer term solution.

Two diplomats said Ukraine could be asked to repay the initial bridging loan to the EU, once it has received funding from the long-term reparations loan. Another possibility would be a long-term solution involving a combination of the reparation loan and joint EU borrowing.