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The European Commission proposed Wednesday an unprecedented use of frozen Russian assets or international borrowing to raise €90bn ($105bn) for Ukraine to cover its struggling military and basic services against Russia's war.The European Union's executive body has declared it favours a "reparations loan" using Russian state assets immobilised in the EU due to Russia's invasion of Ukraine. But Belgium, which holds most of the assets, has voiced a range of concerns that it said had not been satisfactorily addressed by the proposals."We are proposing to cover two-thirds of Ukraine’s financing needs for the next two years. That’s €90bn euros. The remainder would be for international partners to cover," Commission President Ursula von der Leyen told reporters."Since pressure is the only language the Kremlin responds to, we can also dial it up," she said. "We have to increase the costs of war for (Russian President Vladimir) Putin's aggression and today's proposal gives us the means to do this."She said the proposal to EU member states had taken into account almost all the concerns raised by Belgium, whose Brussels-based financial institution Euroclear is the main holder of the assets.The proposal would now also cover other financial institutions in the EU that hold Russian assets, von der Leyen said. EU officials said France, Germany, Sweden and Cyprus also held such assets.Russia has warned the EU and Belgium against using its assets, which it says would be an act of theft. The Commission says the scheme does not amount to confiscation as the money would be in the form of a loan — although Ukraine would only have to redeem it if Russia pays reparations.The complexities around the scheme increased after a US-backed 28-point plan to end the war in Ukraine proposed that some of the assets be used in a joint American-Russian investment vehicle.But von der Leyen said she had informed US Treasury Secretary Scott Bessent of her plan to move forward with the reparations loan and it had been "positively received".Economy Commissioner Valdis Dombrovskis said the EU was also seeking to persuade other international partners to provide support in the first quarter of next year as the EU money would probably not be available until the second quarter.The Commission said the EU could proceed with the scheme if 15 out of 27 member countries, representing at least 65% of the bloc's population, voted in favour.EU officials said this would also apply to ensure Russia's sanctioned assets remain immobilised, an essential part of the reparations loans, under EU law allowing financial assistance in instances of "severe difficulties". Sanctions roll-overs normally require unanimity.The other option — borrowing on international markets using the EU budget — would also normally require unanimity among EU countries — a potentially difficult hurdle as Hungary's Russia-friendly government has opposed previous funding for Ukraine.European Central Bank President Christine Lagarde told a European Parliament hearing that using a reparations loan would be a stretch from a legal and financial standpoint though it would "hopefully" respect international law and financial stability.Hours earlier, before the Commission's legal proposals were presented, Belgian Foreign Minister Maxime Prevot declared that they fell short of Belgium's requirements."We have the frustrating feeling of not having been heard. Our concerns are being downplayed," Prevot told reporters at a meeting of Nato foreign ministers in Brussels."The texts the Commission will table today do not address our concerns in a satisfactory manner."The issue is likely to come to a head at an EU leaders summit on December 18, when the Commission said it hoped to clinch a firm commitment by member states.Belgium has demanded that other EU countries guarantee they will cover all legal costs arising from any Russian lawsuits against the scheme. It also wants them to guarantee they would help provide money quickly to pay Russia back if a court ever ruled Moscow must be refunded.Thirdly, it has demanded that other countries holding Russian frozen assets also make those funds available to Ukraine. 

European Commission President Ursula von der Leyen welcomed on Tuesday US President Donald Trump's peace proposal, which aims to end the nearly two-year-old war in Gaza. "I welcome US President Donald Trump's commitment to end the war in Gaza and encourage all parties to now seize this opportunity. The EU stands ready to contribute," she said on X platform. "Hostilities should end with provision of immediate humanitarian relief to the population in Gaza and with all hostages released immediately," she added. The US President has announced a plan to end the war in the Gaza Strip through a comprehensive agreement that guarantees the unimpeded delivery of adequate humanitarian aid to the Strip, prevents the displacement of Palestinians, releases hostages, establishes a security mechanism that guarantees the security of all parties, in addition to a full Israeli withdrawal, the reconstruction of Gaza, and the establishment of a path to a just peace based on the two-state solution. This would see Gaza fully reunited with the West Bank in a Palestinian state in accordance with international law, as a key to achieving regional stability and security.

The European Commission on Wednesday proposed suspending a trade arrangement affecting about 5.8 billion euros ($6.87 billion) of Israeli exports due to the Gaza war, although the measure does not currently have enough support among EU nations to pass.EU foreign policy chief Kaja Kallas also proposed a package of sanctions on two Israeli ministers, as well as "violent" Israeli settlers and 10 senior members of Hamas.The two ministers are far-right National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, an EU official said.Israel's nearly two-year offensive in Gaza and the worsening humanitarian situation has increased political pressure on European leaders to take action.The European Union is Israel's biggest trading partner, with trade in goods between the two amounting to 42.6 billion euros last year, according to the EU.If the free-trade arrangement is suspended, Israel would face duties at the same level as other countries without a trade accord with the bloc.In Israel's case, that would affect exports worth approximately 5.8 billion euros, resulting in an estimated 227 million euros a year in duties, a senior Commission official told reporters.Israeli Foreign Minister Gideon Saar said on X that the European proposals are "morally and politically distorted, and it is to be hoped that they will not be adopted".The suspension of free-trade arrangements, first floated by European Commission President Ursula von der Leyen last week, would require the support of a qualified majority of EU governments - 15 out of 27 EU members representing 65% of the EU population.EU diplomats told Reuters that it is unlikely that the proposal would get the necessary support, with much depending on Germany, which has so far been reluctant to impose EU penalties on Israel.A German government spokesperson said on Wednesday it has not yet formed a final view on the EU proposals and Germany wants to keep the channels of communication with Israel open.Diplomats say the proposed measures against the Israeli ministers are also unlikely to pass as they require unanimous support from EU members.Kallas said that although public opinion has been shifting due to suffering in Gaza, she believes "the political lines are very much in the place where they have been so far".But the proposals mark a political shift in the EU's relationship with Israel.The Commission is also putting its bilateral support for Israel on hold, without affecting work with Israeli civil society and Yad Vashem, Israel's main Holocaust memorial centre.

EU chief Ursula von der Leyen said Wednesday she would push to sanction "extremist" Israeli ministers and curb trade ties over Gaza, as she warned famine could not be used as a "weapon of war".Addressing the European Parliament, von der Leyen lamented that divisions among member states were holding back a European response and said the European Commission she leads "will do all that it can on its own"."What is happening in Gaza has shaken the conscience of the world. People killed while begging for food. Mothers holding lifeless babies. These images are simply catastrophic," von der Leyen said."For the sake of the children, for the sake of humanity -- this must stop."The German politician, 66, said the commission would put its bilateral support to Israel on hold, stopping all payments, but without affecting work with civil society groups and Israel's Yad Vashem Holocaust memorial.The measure is to affect future allocations amounting to about six million euros ($7 million) a year and the disbursement of about 14 million euros for ongoing institutional cooperation projects, the commission said.The European Union's executive will propose sanctions on "extremist ministers" -- whose actions and words "incite violence" -- and "violent settlers".And it will push for a partial suspension of an association agreement with Israel on trade-related matters.But such measures will need approval by the bloc's 27 member states, which have been deeply divided on how to respond to Israel's actions in Gaza."I am aware it will be difficult to find majorities," von der Leyen conceded."And I know that any action will be too much for some. Too little for others. But we must all take our own responsibilities".The United Nations declared famine last month in parts of Gaza, warning that 500,000 people face "catastrophic" conditions.