Reparations Loan for Ukraine: Kallas Rules Out Plan B

EU plans a €90 billion reparations loan for Ukraine over two years, funded by frozen Russian assets. Kaja Kallas stresses focus on plan A, dismissing alternative funding options.

A reparations loan of up to €90 billion for two years is planned to be financed from the revenues and cash balances of frozen Russian assets in Europe.

The EU is focused on preparing a reparations loan for Ukraine based on frozen Russian assets, and alternative funding scenarios are not currently being considered, EU High Representative for Foreign Affairs Kaja Kallas stated.

This was reported by Radio Svoboda on Wednesday, December 17.

“I always maintain the position that we need to focus on plan A. Because as soon as you start talking about plan B, in reality it is plan B that gets implemented. That is why all efforts are currently focused on plan A, and we are not even discussing other options,” she emphasized.

Kallas explained that Belgium’s main concerns relate to the distribution of risks and the financial burden if a reparations mechanism is launched. At the same time, the EU High Representative believes that the European approach itself can mitigate these risks.

“If they are worried about pressure or do not like the level of risk, then the best option is actually the European approach, because Belgium would simply be following the law — the European Union adopts the law, and Belgium has to comply with it,” she added.

Separately, Kallas expressed skepticism about potential Russian attempts to challenge the freezing of assets through courts or arbitration. In her view, such steps are primarily aimed at increasing fears in Belgium, where a significant portion of Russian assets is concentrated. She insists that in courts in countries with the rule of law, Russia would not succeed.

The reparations loan is considered a financial support mechanism for Ukraine of up to €90 billion over the next two years, funded by revenues and cash balances from frozen Russian assets, the total of which in Europe is estimated at around €210 billion.

Earlier, Members of the European Parliament decided to apply an accelerated procedure to consider the proposal for a “reparations loan” for Ukraine.

EMPR