ukraine war funding – Artifex.News https://artifex.news Stay Connected. Stay Informed. Thu, 11 Dec 2025 12:47:00 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://artifex.news/wp-content/uploads/2026/05/cropped-cropped-app-logo-32x32.png ukraine war funding – Artifex.News https://artifex.news 32 32 Europe’s dilemma: How to fund Ukraine? https://artifex.news/article70384584-ece/ Thu, 11 Dec 2025 12:47:00 +0000 https://artifex.news/article70384584-ece/ Read More “Europe’s dilemma: How to fund Ukraine?” »

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While Germany, Europe’s largest economy and Britain and France have pledged to raise their military assistance for Ukraine in 2026, Italy has scaled back its contribution.
| Photo Credit: AP

On October 23, European Union leaders pledged to finance Ukraine for the next two years. But that immediately raised a pressing question: where would the money come from? EU leaders will meet in Brussels on December 18, where they are expected to take a final decision.

Most EU governments are already grappling with high public debt. Raising more funds from financial markets would be both economically burdensome and politically unpopular.

Since Russia invaded Ukraine in February 2022, EU governments have spent roughly $230 billion on assistance. Last year, the bloc raised $54 billion for Ukraine using its budget as collateral. But the loan appeared as additional debt on the EU’s books. Any new loan would add to the EU’s collective debt burden, worsening the bloc’s borrowing position. Moreover, new market borrowing requires unanimous approval from all 27 member states. Hungarian Prime Minister Viktor Orban has already ruled it out.

Individual European countries, meanwhile, are showing signs of hesitation. While Germany, Europe’s largest economy and Britain and France have pledged to raise their military assistance for Ukraine in 2026, Italy has scaled back its contribution. Spain, which provided $1.2 billion to Ukraine in 2025, has made no commitment for the year ahead.

With limited options, Europe has turned to the $244 billion in frozen Russian assets held in the continent. The proposal is to use these assets to fund a $104 billion loan to Ukraine that would be disbursed in the next two years. For the scheme to work, the Russian assets must be immobilised indefinitely, rather than the temporary freezing enforced currently. Once the war ends, it would be up to Ukraine, which is seeking reparations from Russia, for repaying the loan. Ukraine has welcomed the proposal, while Russian leader Vladimir Putin has warned against the “EU theft”.

But there are two major problems. First, almost all of the frozen Russian assets are held in Euroclear, the central securities depository in Belgium. Brussels has opposed the EU’s plan, citing legal and financial risks. Belgium fears it would get embroiled in legal troubles if Russia retaliates or if sanctions are lifted. It demands guarantees that other EU members share any potential costs. Second, the Trump administration of the U.S. also opposes the EU approach. According to Donald Trump’s 28-point peace plan, the frozen Russian assets should go into a joint investment fund for Ukraine’s reconstruction, once a peace deal is clinched.

Europe, sidelined from the peace process by the U.S., opposes the Trump plan. In marathon meetings held in Geneva and London in recent weeks, European leaders reiterated their commitment to support Ukraine. But Kyiv is running out of money, and Europe is struggling to raise more. That leaves Europe with the frozen Russian assets. If Europe immobilises the assets permanently and uses it to fund Ukraine, it risks enhancing tensions with Russia and deepening rifts with Washington. Such a move would also raise questions about the safety of parking reserves in the euro. But if it doesn’t do that, Ukraine, which is already losing ground on the battlefield, would be in deep peril. There are no good options for the EU’s leaders.



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Biden urges Congress to avoid a government shutdown, send urgent aid to Ukraine and Israel https://artifex.news/article67893424-ece/ Tue, 27 Feb 2024 20:34:12 +0000 https://artifex.news/article67893424-ece/ Read More “Biden urges Congress to avoid a government shutdown, send urgent aid to Ukraine and Israel” »

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U.S. President Joe Biden and Vice President Kamala Harris meet with House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer in the Oval Office at the White House in Washington, U.S., February 27, 2024.
| Photo Credit: Reuters

U.S. President Joe Biden implored the top four leaders of Congress on February 27 to act quickly to avoid a looming government shutdown early next month and to pass emergency aid for Ukraine and Israel, as a legislative logjam in the GOP-led House showed no signs of abating.

Biden hosted House Speaker Mike Johnson, Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, and Senate Minority Leader Mitch McConnell, in the Oval Office along with Vice President Kamala Harris.

“The need is urgent,” Mr. Biden said of the Ukraine aid. “The consequences of inaction every day in Ukraine are dire.”

He noted that Israel also needs U.S. funding to replenish its supply of Iron Dome interceptors that it uses to protect against inbound rockets.

Republicans in the House have thus far refused to bring up the $95 billion national security package that bolsters aid for Ukraine, Israel and the Indo-Pacific. That measure cleared the Senate on a bipartisan 70-29 vote this month, but Mr. Johnson has resisted scheduling it for a vote in the House.

Central Intelligence Agency Director Bill Burns also joined the meeting. Mr. Burns has played key roles in coordinating the U.S. response to Russia’s invasion of Ukraine as well as efforts to secure the release of hostages held by Hamas after its Oct. 7 attack on Israel.

Government shutdown looms

Apart from the national security package, government funding for agriculture, transportation, military construction and some veterans’ services expires on March 1. Funding for the rest of the government, including the Pentagon, the Department of Homeland Security and the State Department expires a week later, on March 8, the day after Biden is set to deliver his State of the Union address.

“It’s Congress responsibility to fund the government,” Mr. Biden added. “A government shutdown would damage the economy significantly. We need a bipartisan solution.”

The Senate’s top two leaders also urged that the government be kept open. Parts of the Government could start to scale back operations as early as Friday unless a deal is reached on spending and legislation is sent to Biden for his signature.

Funding for Ukraine, boder security discussed

Mr. Schumer said outside the West Wing the meeting was one of the most intense he’d ever had in the Oval Office. The leaders spoke of the need to fund Ukraine, avoid a shutdown and border security.

“We are making good progress,” Mr. Schumer said. “The Speaker said unequivocally he wants to avoid a government shutdown.”

He described Mr. Biden, Ms. Harris, Mr. McConnell, Mr. Jeffries implored the Speaker to pass Ukraine funding urgently.

“We made it clear how vital this was to the United States, this was so, so important, and that we couldn’t afford to wait a month or two months or three months, because we would in all likelihood lose the war, NATO would be fractured at best, allies would turn away from the United States, and the boldest leaders, the boldest autocrats of the world … would be emboldened,” he said.

But Mr. Johnson, in brief remarks outside the West Wing following the Democrats, didn’t mention Ukraine funding. He described discussing the border and government funding in the meeting as well as a one-on-one with Mr. Biden following the leader discussion. “The first priority of the country is our border, and making it secure,” he said.

Republicans tanked a bipartisan border deal after Donald Trump encouraged them to; the bill would have denied migrants the ability to apply for asylum at the border if the number of daily crossings became unmanageable for authorities, among other major changes. “It is a catastrophe and it must stop and we will get the Government funded and we’ll keep working on that,” he said.

Mr. Jeffries said he told the Speaker they’d be willing to work on a border deal. “We all agree we have a broken immigration system and there is a need to address the challenges at the border,” he said.

Mr. McConnell, in a Senate floor speech ahead of the meeting, criticized Western nations that “hesitate” to aid Ukraine, but mostly pointed to decisions during the Obama administration not to send military aid to Kyiv.



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