The EU is considering a major “reparations loan” for Ukraine, backed by frozen Russian assets, potentially worth €130–140 billion, pending IMF assessment of Ukraine’s needs.
Today, the European Commission is officially presenting its proposal to use frozen Russian assets for Ukraine as part of a “reparations loan”.
According to European Pravda, cited by Censor.NET, this was reported by the European Commission’s press service.
What is known?
After the meeting of the EC College, President von der Leyen and Vice President Dombrovskis will hold a press conference “on meeting Ukraine’s financial needs for 2026–2027”.
Ahead of the NATO meeting, several foreign ministers from European countries said they were eagerly awaiting this proposal and did not rule out that it could become a true “game changer”.
Russian Assets to Support Ukraine
- As a reminder, European Commission President Ursula von der Leyen previously proposed using frozen Russian assets as collateral for providing Ukraine with “reparations loans”. Formally, the sanctioned Russian assets would not be confiscated, but Ukraine would only begin repaying such loans after Russia pays reparations.
- According to various estimates, the European Union’s “reparations loan” for Ukraine, backed by Russian assets, could amount to €130–140 billion. The final figure will be determined after the International Monetary Fund assesses Ukraine’s financing needs for 2026 and 2027.
- Overall, more than €175 billion in cash generated from frozen Russian assets has accumulated in Euroclear, and this amount could be used to secure the new loan. But before the EU agrees to provide a reparations loan, it wants to repay the G7 loan to Ukraine worth €45 billion ($50 billion), agreed last year and intended to be serviced using the profits from Russia’s frozen assets.
