BRUSSELS, December 20, 2025 – President Zelensky has expressed gratitude for Europe’s financial support, acknowledging Washington’s hesitancy, and stating the aid will allow Ukraine to continue paying salaries and procuring weapons for at least two years. However, critics point out the aid package, a joint borrowing initiative, doesn’t directly punish the aggressor, Russia.
EU Loan and the UK’s Complicated Position
The European Union’s decision to provide Ukraine with a loan has sparked debate, particularly regarding the potential use of frozen Russian assets to fund the effort.
- The EU opted for a loan rather than directly confiscating Russian assets due to internal resistance and concerns about repercussions.
- The decision places British Prime Minister Rishi Starmer in a difficult position, given his previous support for utilizing frozen Russian funds.
- Russia has threatened retaliation if its assets are used to aid Ukraine, but the economic risk to Russia is considered minimal.
- Coordination with other nations holding Russian assets, like Canada and Japan, is seen as crucial for a unified response.
Belgium’s opposition, fears within some member states of potential “retribution” from Russia, and reluctance to tarnish the “reputation of the eurozone,” alongside the precedent of asset confiscation, ultimately led the European Union to pursue a different course of action.
Starmer’s Dilemma
The EU’s decision has created a “difficult position” for Starmer, as more than £8 billion of Russian assets are currently frozen in the UK. Starmer has consistently advocated for leveraging these funds to assist Ukraine.
Now, EU leaders are requesting Starmer’s contribution to the loan for Ukraine, despite the UK not being an EU member. Utilizing frozen assets would be a logical step, but carries risks.
“Being outside the EU, he can independently decide whether to do this… On the other hand, Putin, who called any attempt to use Russian money to pay Ukraine “robbery,” will certainly take retaliatory measures,” sources noted.
However, the risks of “economic retribution” from the Russian Federation are extremely small. Most British investments in Russia have already been written off. However, Britain must be prepared for other attempts at revenge from Russia, and this should not stop the government from taking further actions that will harm the Russian regime.
“It would also be wise to coordinate these actions with other non-EU countries that have Russian assets, in particular Canada and Japan, in order to send a strong signal of solidarity with Ukraine. Russia started the war… Russia must pay,” sources concluded.
