Nato to boost Ukraine aid after Putin's 'ready for war' threat

Nato foreign ministers met in Brussels on Wednesday to accelerate defence investments amid concerns that US-mediated peace talks are floundering, as tensions rise among European allies over how to use frozen Russian assets to support Ukraine.

Nato Secretary General Mark Rutte issued a statement before the closed-door meeting, saying European states and Canada are "really stepping up defence investments, and that's good, but we cannot afford to rest on our laurels – we all need to pull our weight and fast".

In a highly unusual move, US Secretary of State Marco Rubio skipped the meeting, but his European counterparts played down the significance of his absence. Dutch Foreign Minister David van Weel said he understood Mr Rubio was busy dealing with international crises, including in Gaza and Venezuela.

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'Destiny on the line'

The meeting took place hours after high-stakes US-Russia talks in Moscow appeared to yield little. Europeans have largely been sidelined in recent US mediation efforts during an intense week of diplomacy, with negotiators shuttling between Geneva, Miami and Moscow.

Ukrainian President Volodymyr Zelenskyy said his lead negotiator Rustem Umerov is expected in Brussels on Wednesday to hold talks with European national security advisers before returning to the US.

Any plan must be to end the war for good and not merely lead to a temporary pause in the fighting that began with Moscow's full-scale invasion in February 2022, Mr Zelenskyy said this week.

Mr Umerov was in Florida on Sunday to further press Ukrainian demands to a US delegation led by Mr Rubio. US President Donald Trump's envoy Steve Witkoff also took part in the meeting before travelling to Moscow to meet Russian President Vladimir Putin.

It is understood the original 28-point plan presented to Mr Putin, which was widely described as being favourable to Russia, has been altered under European and Ukrainian pressure during talks in Switzerland on November 23. "So far we haven't found a compromise, but some American solutions can be discussed," senior Russian presidential aide Yuri Ushakov said after the meeting in the Kremlin.

In Brussels, UK Foreign Secretary Yvette Cooper said while Mr Trump was "pursuing a just and lasting peace", Russia had shown no sign of engaging meaningfully in discussions and escalated its attacks against Ukraine, including strikes against its energy infrastructure. Ms Cooper announced an additional £10 million ($13.3 million) to support energy infrastructure repair.

Norway, Germany and Poland also pledged a joint $500 million donation for Ukraine to purchase US military equipment. "Europe's security is on the line. Europe's destiny is on the line," Norwegian Foreign Minister Espen Barth Eide said.

'Sabre-rattling'

Mr Putin said on Tuesday that Russia was "ready right now" if Europe wanted to start a war, remarks that have caused alarm among Nato members. Mr van Weel said the "horrible comments" were a "serious warning" to Europe that it should increase defence spending. Speaking to Sky News, Ms Cooper described it as the "same old sabre-rattling" from Mr Putin.

Referring to recent sabotage on a Polish rail track attributed to Russia that was "clearly meant to kill Polish citizens", Poland's Foreign Minister Radoslaw Sikorski said: "Vladimir Putin is threatening us Europeans in Moscow. Unfortunately, these are not just words in Poland."

However, cracks between allies have appeared on the thorny issue of using $140 billion in frozen Russian assets despite opposition from Belgium, where the funds are held. Foreign Minister Maxime Prevot said his country had the "frustrating feeling of not having been heard" by the European Commission, which wants to use the funds to issue a $161 billion loan to Ukraine.

Belgian fears

Mr Prevot described the proposal as "unsatisfactory". He added: "The reparation loan scheme entails consequential economic, financial and legal risks. It is not acceptable to use the money and leave us alone facing the risks."

In a move European diplomats have described as legally safe, the commission wants to use the funds for a loan to cash-strapped Ukraine in an effort to avoid having to use European taxpayers' money. Yet Belgium fears being sued by Russia and wants open-ended financial guarantees from other EU states. The proposal can be adopted by a qualified majority of EU countries, meaning Belgium alone cannot block it.

European Commission President Ursula von der Leyen attempted to assuage Belgian worries in a press conference. "We share absolutely the same goal, like Belgium, that the risks have to be shared by all of us, and have to be fairly and evenly distributed," she said.

Two thirds of Ukrainian's budget gap of $135 billion in 2026-2027, a according to International Monetary Fund estimates, can be funded by the EU, she added, with international partners covering the remainder.

The other option is for EU nations to borrow funds for Ukraine on capital markets, an option not favoured due to budget constraints. It would be harder to adopt than the reparation loan because it would require unanimous backing. A decision is expected at the next meeting of EU leaders in Brussels on December 18.