BRUSSELS — EU chief Ursula von der Leyen insisted Thursday that using frozen Russian assets to fund a new loan was the "most effective way" to finance Ukraine, as she laid out other options after opposition from Belgium.

 

The 27-nation bloc is scrambling for funds to help Kyiv plug looming budget black holes as Russia's war drags on towards a fourth year.

 

Von der Leyen's executive has put forward a plan to use Russian central bank assets immobilised in Belgium to generate a 140-billion-euro "reparations loan" for Ukraine.

 

But that has so far faced opposition from the Belgian government, which fears it could face legal reprisals from Moscow.

 

"We are working closely with Belgium, and all member states, on options," von der Leyen told EU lawmakers.

 

She remained adamant the frozen assets plan , under which the EU "gives a loan to Ukraine, that Ukraine pays back if Russia pays reparations" , remains the best choice.

 

"This is the most effective way to sustain Ukraine's defence and its economy. And the clearest way to make Russia understand that time is not on its side," the European Commission president said.

 

Von der Leyen set out two other options if there was no green light on that plan.

 

The first was to use wiggle room in the EU's central budget to raise money on capital markets and the second was that member states jointly borrow the money.

 

EU officials and diplomats warn that both plans would incur greater costs for countries at a time when national budgets are under strain.

 

Diplomats said that by setting them out, the commission was looking to pile pressure on Belgium to agree to tap the frozen assets.

 

EU economy chief Valdis Dombrovskis said there was "broad support" among member states to use the frozen assets at a meeting of the bloc's finance ministers Thursday.

 

"There was wide recognition that this option is the most feasible means of quickly bridging Ukraine's funding gap, without placing additional substantial fiscal burdens on member states," Dombrovskis said.

 

"Ukraine's financing needs are not only large, but also urgent. We are under time pressure and must move forward in a constructive, pragmatic, and cooperative way," he said.

 

EU officials say they want to seal a deal on a financing plan for Ukraine at a summit of the bloc's leaders in December.