Bangladesh, Dec. 18 -- European Union leaders gathered in Brussels this week under the shadow of one of the most contentious financial and legal debates the bloc has faced since the start of the Ukraine war: whether to use frozen Russian assets to bankroll Kyivs military and collapsing budget. Framed by EU officials as an innovative financial solution, the proposal has instead exposed deep fractures within the union, raising uncomfortable questions about legality, economic credibility, and political overreach.

At the heart of the dispute lies approximately €210 billion in Russian central bank reserves frozen within EU jurisdictions, most of it held in Belgium through the Euroclear settlement system. European Commission President Ur...