BRUSSELS (CN) — The European Union unveiled plans Wednesday to independently finance Ukraine's war effort through 2027, signaling a decisive break from U.S.-led peace negotiations as Brussels prepares to sustain Kyiv with or without Washington's support.
The European Commission — the EU's executive arm — rolled out a 90-billion-euro "reparations loan" backed by frozen Russian assets and finalized a ban cutting off all Russian gas imports by 2027 — moves that came as Trump administration envoys held talks in Moscow that have left European allies on the sidelines.
The twin announcements represent Europe's most aggressive economic action yet against Moscow and its clearest preparation for strategic autonomy on Ukraine. The commission is prepared to force the measures through over objections from Belgium, which holds most of the frozen assets and faces a Dec. 19 deadline to reach agreement or be outvoted.
The move effectively decouples European support for Ukraine from Washington's diplomatic timeline, ensuring continued military aid even if Trump brokers a ceasefire that leaves Russian forces occupying Ukrainian territory.
The proposal is designed to invite Washington and other allies to join with their own frozen Russian assets, though commission President Ursula von der Leyen's briefing with U.S. Treasury Secretary nominee Scott Besent prompted only a noncommittal "positive" response.
"We are increasing the cost of Russia's war of aggression," von der Leyen said. "And this should act as a further incentive for Russia to engage at the negotiating table."
The moves come as the transatlantic alliance shows deepening strain over Ukraine strategy. U.S. special envoy Steve Witkoff and senior adviser Jared Kushner spent hours Tuesday in Moscow for talks with Russian President Vladimir Putin that yielded no breakthrough. Before the meeting, Putin warned that if Europe "starts a war" with Russia, Moscow would respond so decisively there would be "no one left to negotiate with."
NATO foreign ministers gathered Wednesday in Brussels to discuss Washington's draft peace plan, with European allies pushing to have a say after being blindsided by the U.S.-Russia negotiations. NATO diplomats say allies want consultation before any deal on key issues like Ukraine's NATO membership, troop deployments on allied soil and compliance with international law.
But Washington sent only a deputy minister to the NATO meeting, while Secretary-General Mark Rutte — who continuously praised Trump's leadership — dodged every question about the negotiations, saying NATO is "closely coordinating" with Washington. On the frozen assets, he said the proposal is "primarily playing out at the level of the European Union" but added that "if that is not happening, then it's absolutely clear that we need to get the money in another way."
Translation: Europe is preparing to go it alone.
The gas ban will cut Russian energy revenues from 12 billion euros monthly in early 2022 to 1.5 billion euros now — and zero by late 2027. The phaseout bars new contracts within six weeks and eliminates all Russian gas from EU markets by fall 2027. Brussels will also propose banning Russian oil imports early next year.
"Putin has used the profits to finance a terrible war," Energy Commissioner Dan Jørgensen said Wednesday alongside von der Leyen. "Today we say: No more! And never again!"
Borrowing against frozen cash
The commission's 90-billion-euro proposal offers EU countries a choice: borrow traditionally using the EU budget, or use frozen Russian cash as collateral — about 45 billion euros annually for Ukraine's civilian government and military needs. That's lower than the 140 billion euros initially discussed.
"We can equip them with the means to defend themselves and to lead peace negotiations from a position of strength," von der Leyen said. "Since pressure is the only language the Kremlin responds to, we can also dial it up."
