European Commission President Ursula von der Leyen said the EU could issue joint debt to fund Ukraine if efforts to use frozen Russian assets fail.

The Commission initially proposed a €140 billion reparations loan backed by Russian state assets frozen in Europe, but Belgium has resisted due to legal and financial concerns.

Alternative options include individual EU countries financing Ukraine through their national budgets, which is difficult for highly indebted nations like France and Italy.

Von der Leyen emphasized that using frozen Russian assets is the most effective way to support Ukraine’s defense and economy while sending a message to Russia, Politico has reported.

EU finance ministers are set to discuss the plan as Ukraine faces a funding shortfall expected next spring.