L to R: European Council President António Costa, Ukraine President Volodymyr Zelensky, and European Commission President Ursula von der Leyen, Brussels, Belgium, March 6, 2025 (New York Post)

Wednesday’s Coverage: Proposals to End Invasion “Presented to Russia Within Days”

UPDATE 2022 GMT:

A woman was killed and her three children injured when their car was hit by a Russian drone strike on the Odesa region in southern Ukraine.

Energy infrastructure was also damaged, with emergency services trying to restore power.

UPDATE 2006 GMT:

Denmark is summoning the Russian ambassador, accussing two hacker groups linked to Moscow of carrying out cyber-attacks.

One of the attacks, attributed to pro-Russian group Z-Pentest, blew up pipes explode at a Danish water treatment plant in 2024.

On the eve of Denmark’s municipal and regional elections in November, the group NoName057 cut access to the websites of several political parties, municipalities, public institutions and a defense company.

“We are very confident that these are pro-Russian groups linked to the Russian state,” said Thomas Ahrenkiel, the head of Denmark’s military intelligence agency.

UPDATE 1943 GMT:

Amnesty International has warned of an “unprecedented emergency” from Russian attacks on Ukraine’s energy infrastructure leaving millions of residents without power this winter.

UPDATE 1940 GMT:

The UK has expanded its sanctions on Russian energy companies to include Tatneft, Russneft, NNK-Oil, and Rusneftegaz.

The UK announced sanctions on Russian oil giants Rosneft and Lukoil in October.

UPDATE 1713 GMT:

Ostensibly working on ships carrying Russian oil, personnel with links to Moscow’s military and security services are carrying out espionage in European waters, say Western and Ukrainian intelligence sources.

Ukrainian intelligence says some ships in Russia’s “shadow fleet” board extra crew members shortly before leaving port. Some of the men are employed by the Russian company Moran Security and have worked for Russia’s private military contractors.

Moran has ties to Russian military and intelligence. It was sanctioned by the US Treasury in 2024 for providing “armed security services” for Russian state-owned enterprises to “intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine”.

Ukrainian intelligence said it observed the introduction of the personnel on the shadow fleet about six months ago.

A Western intelligence source said that, on one occasion, Moran personnel on a tanker took photographs of European military installations.

The personnel are also tasked with keeping an eye on the ships’ captains, most of whom are not Russian citizens.

UPDATE 1539 GMT:

Ukraine Volodymyr Zelensky has expanded on his comments on the necessity of the EU reparation loans to Ukraine.

He says that if the decision to seize Russian assets is not made now, others “will feel that Europe can be defeated”.

I know that Russia is intimidating different countries over this decision. But we should not be afraid of threats – we should be afraid of Europe being weak.

How can anyone believe in future security guarantees if Europe can’t deliver a financial security guarantee for Ukraine in a situation that is morally clear and just?

Defeat isn’t what people of Europe need. They need Europe not to back down before aggressors.

If we know – and if Putin knows – that we can stay resilient, then his reason to drag out this war becomes much weaker.

This is how pressure on the aggressor should work – pressure that brings peace. Thank you to everyone leading Europe in this direction. Europe must be strong.

Zelensky also posted footage of his meeting with Belgian Prime Minister Bart de Wever, the primary obstacle to the repatriation loan.

UPDATE 1348 GMT:

Ukraine struck a Russian military airfield in occupied Crimea, destroying air defense equipment worth hundreds of millions of dollars, says the Ukrainian State security agency SBU.

The overnight attack by long-range drones targeted the Belbek airbase near Sevastopol.

The SBU said the strike damaged or destroyed two Nebo-SVU long-range radar systems; a 92N6 radar used in the S-400 “Triumf” air defense system; a Pantsir-S2 air defense system; and a MiG-31 fighter jet equipped with a full combat load.

UPDATE 1328 GMT:

Volodymyr Zelensky says Ukraine needs a decision on the EU reparations loan by the end of the year.

He notes Kyiv faces a budget deficit of €45 billion to €50 billion ($53 billion to $59 billion) next year. Areas such as drone production could be cut if there is no support by spring.

The President said he had a good conversation with Belgian Prime Minister de Wever. They understand each other’s position, but as Ukraine is at war, it faces even greater risks than Brussels.

He acknowledged Belgian fears about potential legal action by Moscow but said, “It’s not as scary as when Russia is at your borders.”

Poland’s Prime Minister Donald Tusk said EU leaders are engaged “in a very difficult process” seeking agreement with countries “theoretically most at risk from some sort of retaliatory or financial action from Russia”.

He cited a “breakthrough” on broad agreement about the need to act, but he warned, “Polish independence would be under threat if it turns out that as a consequence of poor decisions or a lack of action from Europe, Ukraine was forced to surrender.”

UPDATE 1322 GMT:

The European Union is circulating a draft text seeking a compromise with Belgium on a reparations loan, drawn from frozen Russian assets, to Ukraine.

The draft communiqué of the summit pledges, “The European Union will act in full solidarity with affected member states and financial institutions in the EU in the context of the reparations loan.”

There will be “EU solidarity and risk sharing among all member states providing guarantees proportional to the size of their economy”.

The text notes that not all member states — Hungary and Slovakia have pro-Kremlin leaders — support the reparations loan and guarantees. However, the measure can be adopted by qualified majority.

UPDATE 1135 GMT:

Ukraine has signed new defense agreements with Germany totaling €1.2 billion ($1.4 billion).

Germany will provide Ukraine with a “long-term” supply of spare parts for Patriot air defense systems. “This will enable faster repair, modernization, and restoration of existing systems, said Ukraine’s Defense Ministry.

German Defense Minister Boris Pistorius confirmed that Berlin has delivered two previously-pledged Patriot air defense systems to Ukraine, as well as its ninth IRIS-T battery.

Germany will also assist with €200 million ($234 million) in the procurement of Ukrainian-made drones, and in the production of 200 Bohdana self-propelled howitzer systems.

UPDATE 1129 GMT:

Ukraine President Volodymyr Zelensky said Kyiv’s officials will meet American counterparts in the US on Friday and Saturday.

He said the discussions will concern the plan to end Russia’s invasion, security guarantees, reconstruction, and all relevant steps and documents. European officials may also be present at the meetings.

It is unclear if the meetings will intersect with those reportedly being held this weekend in Florida between Donald Trump’s envoys, Steve Witkoff and Jared Kushner, and Vladimir Putin’s top economic advisor Kirill Dmitriev.

UPDATE 1114 GMT:

Arriving for the European Union summit, French President said leaders want to “deliver a package of financing” for Ukraine: “It’s very important we find the right compromise and I’m confident that we will find it.”

But Belgian Prime Minister Bart de Wever, the primary obstacle to agreement, told his Parliament that Brussels is still concerned about exposure to legal risks.

He demanded strong guarantees on risk-sharing with other countries: “We need a parachute before we jump. If we are asked to jump, we all jump together.”

Disagreement was on how, not if, Ukraine should be funded, and the challenge is urgent, he said.

UPDATE 0959 GMT:

Entering today’s European Union summit, European Commission President Ursula von der Leyen said, “We have one ultimate goal in this European Council, and that is peace for Ukraine, peace through strength, and for that, Ukraine needs to have a secure funding for the next two years, 2026 and 2027.”

Von der Leyen said talks on a reparations loans for Ukraine will be “intensive”. She “fully supports Belgium’s demands and asks” EU members to share the risks of loan as work for a compromise is “ongoing”.

“For me, the most important part is that, at the end of the day, we have secured the funding for Ukraine for the next two years,” she summarizes.

European Council President António Costa added, “What I can ensure that we will work on this during the today, [and] if it’s necessary tomorrow, but we will never leave the Council without a final decision to ensure the financial needs of Ukraine for 2026 and 2027.”

EU foreign policy head Kaja Kallas said proposals were addressing Belgium’s concerns so “the risk and the burden is shared equally.”

“I hope that we get this over the finishing line. Putin is banking on us to fail, so we should not give him that,” she noted. “The reparations loan is the most viable option right now, on the table, [and] we need to work with that as we have tried other things before.”

And Polish Prime Minister Donald Tusk emphasized:

UPDATE 0922 GMT:

Ukraine President Volodymyr Zelensky has emphasized that, despite American hopes, Vladimir Putin is not prepared to stop Russia’s invasion.

Zelensky responded on Thursday to Putin’s declarations that Russia will seize “historic territories” in Ukraine and that European leaders are “piglets”.

The signals that Putin is giving are absolutely not new to us. I have always said that he does not want to end the war.

The question is whether he can continue it. This issue already depends on our partners, on their pressure, first of all sanctions and diplomacy.

He noted, “American colleagues claim that Putin is ready to end the war both in public and in a non-public format”.

Ukraine supported US initiatives, although it does not agree with all elements of potential agreements: “We have some differences on the territorial issue, financing, and frozen assets.”

He said Russia’s economy will not be able to sustain the invasion at its current level if sanctions are fully enforced: “If Putin now slows down this diplomatic wave, and it is now the largest in recent times, then the US will put more pressure on them.”

Zelensky urged the EU to approve the reparations loan drawn from frozen Russian assets: “I will speak with all the leaders, present our arguments, and I very much hope we can obtain a positive decision. Without it, there will be a big problem for Ukraine.”

UPDATE 0914 GMT:

Russians are almost halving their spending on New Year because of the economic situation, according to the daily Kommersant.

The average spend this season is 14,000 rubles ($175) on groceries and prepared meals, table decorations, outfits and gifts, and rentals of venues and equipment. In 2024, the figure was 26,000 rubles.

The largest expenditure is on the holiday table where Russians are foregoing delicacies such as red caviar, which averages 10,200 rubles per kilogram. Exotic fruits are also disappearing: only tangerines remain, a holiday essential for 56% of respondents.

“For most Russians, the New Year’s Eve feast will be limited to traditional dishes — Olivier salad, a small selection of drinks, and some inexpensive fruits and vegetables,” said Alexander Safonov, a professor at the Government-run Financial University.

UPDATE 0825 GMT:

Two unnamed officials say Donald Trump’s envoys, real estate developer Steve Witkoff and son-in-law Jared Kushner, will meet Vladimir Putin’s top economic advisor Kirill Dmitriev this weekend.

The gathering is likely to be in Witkoff’s private club near Miami, Florida.

Kushner and Witkoff collaborated with Dmitriev in late October on a 28-point ultimatum for Ukraine to give up more territory to Russia. The rest of the country would be kept military and politically weak, with a ban on NATO membership and restrictions on Western aid.

However, Kyiv and its European partners pushed back with a counter-proposal. Meetings with Witkoff and Kushner in Berlin this week yielded “90%” agreement on a plan including security guarantees for Ukraine.

UPDATE 0810 GMT:

At least 32 civilians, including five children, have been wounded by Russian airstrikes on and around Zaporizhzhia city in southern Ukraine.

The Russians struck apartments, a house, and an educational establishment. Firefighters battled a blaze in a multi-story housing block.

Ukraine air defenses downed 63 of 82 drones fired by Russia overnight. The other 19 struck 12 locations.

UPDATE 0804 GMT:

Ukrainian drones have damaged an oil tanker in the port of Rostov-on-Don in southern Russia.

Rostov Mayor Alexander Skryabin claimed casualties, including three fatalities, from the attack.

Rostov Governor Yuri Slyusar said, “Emergency teams are extinguishing the fire on the tanker that was struck while docked in a drone attack.”

ORIGINAL ENTRY: European Union leaders convene on Thursday to consider a “reparations loan”, drawn from frozen Russian assets, to cover Ukraine’s financial needs through 2027.

Ukraine, whose taxes are devoted to military resistance against Moscow’s invasion, needs €135 billion ($159 billion). The EU holds €210 billion ($247 billion) in frozen assets, 2/3rds of them with the Belgian company Euroclear.

Since October, Belgium has blocked approval of the loan, citing concerns over legal liabilities and Russian retaliation against Belgium companies. Several other countries, notably Italy, have expressed doubts.

The Trump Administration has that it will demand “the money back” if the EU uses the assets, say US, Ukrainian, and European officials. US officials claimed limited support from Italian Prime Minister Giorgia Meloni, who has emphasized the need for a rigorous legal framework for the use of the assets.

The Russians are also putting pressure on the EU through targeting of Belgium’s politicians and financial executives in a campaign of intimidation.

Security officials said executives at Euroclear, including chief executive Valérie Urbain, have been targeted. They believe the campaign is overseen by Russia’s GRU military intelligence service.

“No More Important Act of European Defense”

Speaking in the European Parliament on Wednesday, European Commission President Ursula von der Leyen,said: “There is no more important act of European defense than supporting Ukraine’s defense….The next days will be crucial in securing this”.

Von der Leyen said Europe must take responsibility for its own security in a “dangerous and transactional” world: “This is no longer an option. It is a must.”

The President has proposed a loan of €90 billion, with the other €45 billion coming from EU borrowing on capital markets.

Without referring directly to the loan, Ukraine President Volodymyr Zelensky said:

We need real protection from this Russian history of madness, and now we will continue to work with all partners to ensure that such protection is truly there.

The outcome of these meetings – the outcome for Europe – must be such that Russia feels that its desire to continue fighting next year will be pointless, because Ukraine will have support.

This outcome depends “100%” on Europe’s decision and “it is for Europe to make this choice”, he stressed.

German Chancellor Friedrich Merz put the odds of agreement on a €90 billion loan at “50/50”.

He said the step would send a clear signal to Vladimir Putin, while noting Belgium’s concerns: “That is why I am trying with our partners to alleviate them.” The EU plan was “in perfect compliance with international law and international obligations”.