The United States is pressuring the European Union to pause its planned “reparations loan” to Ukraine, arguing that frozen Russian assets should be preserved as leverage for potential peace negotiations rather than used to support Kyiv’s war effort.
According to Bloomberg, the United States is urging the European Union to pause its plan to issue Ukraine a so-called “reparations” loan backed by revenues from frozen Russian assets.
American officials argue that these funds could play a crucial diplomatic role in the future and therefore should not be allocated at this stage.
Washington’s position reflects growing concern that using the assets now could weaken Western leverage in potential peace negotiations with Moscow. U.S. officials reportedly believe that holding the assets in reserve would create stronger pressure on Russia and help shape the conditions of any eventual settlement.
They emphasize that the assets were frozen as part of a broader strategy to deter Russian aggression, and should remain untouched until a political framework for ending the war emerges.
The EU, meanwhile, has been exploring mechanisms to channel profits from the immobilized assets into Ukraine’s defense and reconstruction efforts.
Several European governments support faster financial assistance to Kyiv, arguing that Ukraine needs immediate resources to continue resisting Russia’s invasion.
