EU leaders face a crisis decision over lending Russia’s frozen cash to Ukraine.

European Union leaders will gather for a summit in Brussels where crucial decisions will be made on whether to loan tens of billions of euros of frozen Russian assets to Ukraine to finance its military and economic needs.

Most of Russia’s 210 billion euros (185 billion pounds, $245 billion) worth of assets in the EU are held by Euroclear, a Belgium-based organization that has so far said Belgium and some other member states oppose using the cash.

Without increased financing, Ukraine’s coffers will be depleted within months.

One European government official explained that they are “cautiously optimistic, not overly optimistic” that a deal will be reached. Russia warned the EU not to spend the money.

The company filed a lawsuit against Euroclear in a Moscow court to get its money back.

The Brussels summit comes at a critical moment in the war, and all eyes are on Belgian Prime Minister Bart de Weber. “I have not yet seen any text that would persuade Belgium to change its position,” he told the Belgian parliament on Thursday.

US President Donald Trump said an agreement to end the war that began with Russia’s all-out invasion of Ukraine in February 2022 is closer than ever.

US and Russian officials are scheduled to meet in Miami this weekend for further talks on the peace plan, a White House official told AFP. Kremlin envoy Kirill Dmitriev is expected to speak with Trump envoys Steve Witkov and Jared Kushner.

Ukrainian officials are also turning to the United States, with President Volodymyr Zelenskiy in Brussels telling reporters that if Russia does not comply with U.S. demands to end the war, “Ukraine will definitely need to be strengthened in the near future.”

Russia has yet to respond to the latest peace overtures, but the Kremlin has stressed that plans to deploy a European-led multinational force in Ukraine with US support are unacceptable.

President Vladimir Putin made his feelings about Europe clear Wednesday, saying the continent was in a state of “complete decadence” and that “European piglets” – a derogatory term for Ukraine’s European allies – were hoping to profit from Russia’s collapse.

The European Commission, the EU’s executive arm, has proposed lending about 90 billion euros (79 billion pounds) to Kiev over the next two years out of the 210 billion euros in Russian assets in Europe.

This represents about two-thirds of the €137 billion that Kyiv is expected to have to spend in 2026 and 2027.

So far, the EU has handed over the interest accrued on the cash to Ukraine, but not the cash itself.

“This is a time of crisis where Ukraine must continue to fight for next year,” a Finnish government official told the BBC. “Of course there are peace talks, but this gives Ukraine leverage to say, ‘We are not desperate and we have the money to keep fighting.’”

Committee Chairwoman Ursula von der Leyen said Russia’s war costs would also increase.

Russia’s frozen assets are not the only option for EU leaders. Another idea supported by Belgium is based on the EU borrowing money on international markets, using the EU budget as a guarantee.

But this will require a unanimous vote and Hungary’s Viktor Orbán has made it clear he will not allow any more EU money to help Ukraine.

The remaining time is critical for Ukraine and President Volodymyr Zelenskyy is in Brussels for an EU summit.

EU leaders were keen to emphasize the critical nature of the lending decision.

“We know the urgency. It is serious. We all feel it. We all see it,” von der Leyen told the European Parliament.

German Chancellor Friedrich Merz played a leading role in pushing for the use of Russian assets, telling the Bundestag on the eve of the summit that it would send a “clear signal” to Moscow that continuing the war was pointless.

EU officials are confident there is a sound legal basis for using frozen Russian assets, but the Belgian prime minister remains unconvinced so far. Defense Minister Theo Franken warned ahead of the meeting that lending cash to Euroclear would be a big mistake.

Hungary is considered the biggest opponent of this measure, and ahead of the summit, Prime Minister Orban’s group even argued for excluding the asset freeze plan from the summit agenda. European Commission officials stressed that this was not true and that it would be a matter for the 27 member states attending the summit.

Slovakia’s Robert Fico also opposed using Russian assets if it meant using them to procure weapons rather than rebuilding needs.

When a final vote is held, it must be passed by a majority of at least 15 member states, representing 65% of Europe’s population. Whatever happens, European Council President Antonio Costa has promised that it will not go over the head of the Belgian delegation.

“We will not vote against Belgium,” he told Belgian public broadcaster RTBF. “We will continue to work very intensively with the Belgian government because we do not want to approve something that Belgium cannot accept.”

Belgium will also note that credit rating agency Fitch has placed Euroclear on negative watch. That’s partly because of the “low” legal risk to its balance sheet from the European Commission’s planned use of Russian assets. Euroclear’s chief executive also warned against the plans.

“Of course, there are still many problems and obstacles along the way,” the Finnish official said, adding, “We need to find a way to respond to Belgium’s concerns.” “We are on the same side as Belgium. Together we will find solutions so that all risks can be checked as much as possible.”

But Belgium is not the only country to have doubts, and a majority is not guaranteed.

Italian Prime Minister Giorgia Meloni told Italian lawmakers that he would support the deal “as long as it has a solid legal basis.”

“If the legal basis for this plan is not sound, we will hand Russia its first real victory since the start of this conflict.”

Malta, Bulgaria and the Czech Republic are also reported to have disagreed with the controversial proposal.

If the deal goes through and Russian assets are handed over to Ukraine, the worst-case scenario for Belgium would be a court ordering the money to be returned to Russia.

Some countries have said they are prepared to provide billions of euros in financial guarantees, but Belgium will want to see the numbers add up.

In any case, committee officials are convinced that the only way Russia can get its money back is by paying reparations to Ukraine. At that point, Ukraine will return its “compensation loan” to the EU.