Listen: With Frozen funds and pipelines, EU leaders close to reaching a deal for Ukraine

Today, EU energy ministers are meeting to decide the future of Russian fossil fuels in the bloc, after years of delays and exemptions. At the same time, leaders are debating how to use frozen Russian assets to support Ukraine’s defence, hoping to reach a deal this week.

But can Europe finally act decisively on both energy and financial support and what will it actually mean for the EU?

Production: By Europod, in co-production with Sphera Network.

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You can find the transcript here if you prefer reading:

Today, EU energy ministers are meeting to decide the future of Russian fossil fuels in the bloc, after years of delays and exemptions. At the same time, leaders are debating how to use frozen Russian assets to support Ukraine’s defence.

But can Europe finally act decisively on both energy and financial support and what will it actually mean for the EU?

After years of delays, Hungary and Slovakia are finally facing the end of their carve-outs, which allowed them to keep importing Russian gas and oil despite the war. The EU plans to phase out all Russian fossil fuels by 2028, with a ban on oil and gas imports starting as early as 2026 for certain contracts. At this point, the EU is planning to use a qualified-majority voting system, sidestepping the vetoes of reluctant member states. No more exceptions.

Since Russia invaded Ukraine, the EU has drastically reduced its reliance on Russian energy, from 45 percent of gas imports down to 13 percent, and imposed price caps on Moscow’s oil. Hungary and Slovakia, despite years of claiming they had no alternatives, have continued paying billions to Russia, fuelling the Kremlin’s war machine. Brussels has finally decided enough is enough.

All this while, European leaders are moving closer to a plan to lend Ukraine €140bn, using frozen Russian central bank assets. The idea is straightforward, Ukraine gets an interest-free loan now, and Russia would eventually cover it as war reparations. The EU insists this is not confiscation, just a way to mobilise assets frozen since the start of the invasion.

Ukraine’s financial needs are urgent. It faces a massive budget deficit and estimates suggest €47bn in external support will be required in 2026 alone. Most of this aid will need to come from European allies. Belgium, which holds €183bn of the frozen funds, wants legal guarantees that it won’t be left alone if the scheme collapses.

Meanwhile, the European Commission is considering treaty mechanisms to prevent a single member state, aka Hungary or Slovakia, from blocking the plan, a move some lawyers remain sceptical about.

Now it looks like the EU is finally acting decisively to cut its energy dependence on a country actively waging war. No more bending to a few holdouts; Brussels is asserting that unity and security come first.
On Ukraine, the stakes are equally high. Europe has invested heavily, financially, politically, and morally, in defending the country. Failure to deliver now risks undermining credibility in Kyiv and among EU citizens. And the legal balancing act shows that solidarity in Europe is conditional, negotiated, and sometimes enforced.

What’s next?

In the coming days, EU leaders will meet in Brussels to finalise the plan for Ukraine, while energy ministers are expected to rubber-stamp the fossil fuel phase-out. Ukraine’s president will join by video, outlining urgent funding needs for 2026, while the EU also debates defence readiness, sanctions, and the green transition.

If successful, the €140bn scheme could give Ukraine a lifeline and signal to Russia that Europe can act decisively when pushed. And on energy, the phase-out of Russian gas and oil will finally remove a chokehold that has lasted far too long.