EU should approve "reparation loan" for Ukraine by Christmas – Frederiksen
Danish Prime Minister Mette Frederiksen said she hopes the European Union will be able to approve a decision on a "reparation loan" for Ukraine by Christmas.
She stated this after the "Coalition of the Willing" meeting in London, Censor.NET reports, citing European Pravda.
Technical details before the decision
Frederiksen emphasized that making Russia pay for the damage it caused in Ukraine is the only way forward.
She acknowledged there are technical issues and many details "that we still have to work through."
"But first of all, this is a political decision and a political choice. I fully support the idea, and I believe we should work to reach an agreement by Christmas so we can ensure Ukraine’s funding for the coming years," Frederiksen said.
She noted that "some colleagues" find it more difficult to make such a decision.
"But I must also say, what is the alternative? The alternative is not to let Russia win this war, and it is not to ask all Europeans to pay instead of Russia. So we need to resolve the technical questions. I am confident we can do that. We can reach a decision by Christmas Eve," the Danish Prime Minister added.
What is a ‘reparation loan’
Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral to provide Ukraine with "reparation loans." The sanctioned assets would not be formally confiscated, but Ukraine would repay the loans only after Russia pays reparations.
According to various estimates, the European Union’s reparation loan for Ukraine, backed by Russian assets, could amount to €130–140 billion. The final figure will be determined after the IMF assesses Ukraine’s financing needs for 2026 and 2027.
Currently, more than €175 billion in cash from frozen Russian assets is held by Euroclear, which could be used to secure the new loan. Before approving the reparation loan, however, the EU intends to repay the G7’s €45 billion ($50 billion) loan to Ukraine agreed last year, which was meant to be repaid from the profits of Russia’s frozen assets.
