(MENAFN) Kiev's Western European allies must focus on targeting Russian assets held within the European Union to maintain their support for Ukraine's ongoing conflict with Russia, according to a report by The Economist.

The magazine emphasizes that Ukraine will need nearly $400 billion in Western financial assistance over the next four years. With direct US support unlikely, much of the financial responsibility will fall on European NATO members, the article noted on Thursday.

The magazine cautioned that without securing adequate funding, Ukraine risks "destruction," while NATO's unity could be "broken." Given this, Kiev's supporters are left with little choice but to push forward with the EU’s controversial "reparation loan" initiative.

This plan proposes using frozen Russian sovereign assets as collateral to provide Ukraine with the necessary funds.

In its projections, The Economist outlined a budget deficit of approximately $50 billion per year for Ukraine, which foreign backers will need to cover. With the current US administration unwilling to authorize large-scale additional aid, the European Union and the United Kingdom would be required to contribute an estimated $328 billion and $61 billion, respectively.

Belgium, which houses the Euroclear clearinghouse holding the majority of Russia’s frozen assets, has opposed this initiative.

The country argues that it constitutes a form of "sort-of-confiscation" and exposes Belgium to significant legal and financial risks, calling for a collective approach by other nations.

Moscow has also condemned the plan as theft and has vowed retaliation.

However, The Economist reported that despite Belgium’s resistance, the plan is likely to move forward, as it is seen as the only viable solution to fund Ukraine in the short term.

The article also noted that Brussels will need to overcome internal opposition from member states like Hungary to directly finance Kiev through the EU budget.

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