Moscow/Brussels, 17 Dec 2025 – Russian President Vladimir Putin rejected Western warnings of war escalation as the European Union weighs using frozen Russian assets to fund Ukraine amid the fourth winter of the ongoing conflict.

Speaking at a high-level meeting with defence officials, Putin called Western calls to prepare for war “hysteria and a lie,” while insisting that Moscow will achieve its war objectives. He claimed 300 territories were “liberated” over the past year and reiterated that Russia prefers diplomacy but remains ready to use military force if talks fail.

EU Considers Russian Asset Seizures for Ukraine

Ahead of an EU summit, officials are exploring using portions of the €210 billion ($246bn) in Russian central bank assets in Europe to support Ukraine’s economic and military needs. European Commission President Ursula von der Leyen emphasized the urgency of deciding on funding for Ukraine over the next two years.

EU plans envision a €90 billion ($105bn) “reparations loan”, but legal challenges and potential investor concerns have created divisions. Countries including Belgium, Italy, and several others have expressed hesitation or opposition.

Italian Prime Minister Giorgia Meloni described negotiations as “constructive” but stressed the difficulty of finding a legal framework to use frozen Russian assets. Meanwhile, UK Prime Minister Keir Starmer announced the government will direct £2.5 billion ($3.3bn) from Roman Abramovich’s Chelsea FC sale to humanitarian efforts in Ukraine.

State of Play on the Battlefield

Ukraine reported retaking 90% of Kupiansk in Kharkiv region, though Russian Defence Minister Andrei Belousov disputed control.

Russia currently holds Crimea, most of Donetsk and Luhansk, 75% of Kherson and Zaporizhia, and parts of Kharkiv, Sumy, Dnipropetrovsk, and Mykolaiv. Both sides have recently escalated attacks on energy infrastructure and oil refineries.