BRUSSELS — The EU could jointly borrow funds for Ukraine if its plan to hand over frozen Russian assets does not make progress, European Commission President Ursula von der Leyen said Thursday.

In a speech to the European Parliament, von der Leyen for the first time publicly laid out different options to finance Ukraine’s war effort in the coming years.

The Commission would like to use Russian state assets held in Europe to underpin a €140 billion reparations loan to Ukraine. But the idea has been met with resistance by Belgium, forcing the EU executive to suggest alternatives.

The stakes are high for Belgium because it hosts the financial firm Euroclear that holds the bulk of the immobilized assets, and fears the initiative might create legal and financial risks. The assets were frozen by the EU after Russia’s full-scale invasion of Ukraine in February 2022.

If the assets plan does not come to fruition, von der Leyen suggested issuing common EU debt that will be eventually repaid by national capitals, as POLITICO previously reported.

Another option involves tasking each country to individually fund Ukraine through their national budgets.

Both alternatives, however, are unpalatable for highly indebted countries such as France and Italy, which have little means to finance Ukraine.

Von der Leyen said during Parliament’s plenary session that using the frozen Russian assets “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.”

Her comments to Parliament come as the EU’s finance ministers are set to discuss the topic in Brussels on Thursday.

The EU is facing pressure to reach a rapid agreement as Ukraine is expected to run out of money next spring.