Budrys on delays in financing Ukraine: Time is playing into Russia’s hands, we must spare it this scenario
As early as the beginning of 2026, Ukraine risks finding itself in a financial trap due to the European Union's delays in approving a reparations loan, which plays into Russia's hands.
As reported by Censor.NET with reference to Ukrinform, this was stated by Lithuanian Foreign Minister Kęstutis Budrys before the start of the meeting of the Council of Foreign Ministers of the EU countries in Brussels.
Time is on Russia's side
"With this mechanism and the proposal provided to us by the European Commission, we must act immediately. If we do not do so today, if we do not prepare a decision for the European Council at the end of December, it will mean that we will be in trouble at the beginning of next year. And I know how the Russians see it and what they think of us: that we will not hold out, that we will not cope. And that means that time is on Russia's side. We must deprive them of this scenario," the minister explained.
He stressed that, in addition to talking about political solidarity, EU countries must have clear budget plans to support Ukraine.
"If it's not about finances, then let's talk about the scenario for Ukraine in 2026. And then about what the scenarios for Europe will be. We must take this seriously. This is not something that is happening "somewhere beyond our borders." It is happening here, in Europe," the minister added.
Sanctions pressure on Russia
According to Budris, Europe also still lags behind the US in terms of the power of sanctions.
"This is a sanctions package that we must prepare for next year. It will be the 20th package. And we are still lagging behind the Americans. Every time we talk about taking on more responsibility and showing leadership, the US is ahead of us on sanctions. They have already imposed sanctions on Rosneft and Lukoil, while we were unable to include Lukoil in the 19th package. That is why we must do so and add Rosatom. We like to call each new package "big" or "the biggest," but when it comes to results, we are still not doing enough," said the Lithuanian foreign minister.
What is known about the "reparations loan" for Ukraine?
- At a meeting in October, EU leaders postponed a decision on using frozen Russian assets as collateral for a so-called "reparations loan" to Ukraine worth €140 billion ($163 billion). EU leaders plan to return to this issue at a meeting on December 18-19.
- Belgium, where the lion's share of these funds is held, opposed the European Commission's proposed plan to use frozen Russian assets at a meeting of EU leaders. The country fears legal and financial sanctions from Moscow and wants other EU countries to share these risks.
- Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral for providing Ukraine with "reparation loans". Formally, Russian assets subject to sanctions will not be confiscated, but Ukraine will repay such loans only after Russia pays reparations.
- In turn, Russian dictator Putin responded by signing a decree that effectively allows for the accelerated expropriation of assets belonging to Western companies that have not yet left Russia.
- According to various estimates, the European Union's "reparation loan" to Ukraine, secured by Russian assets, could amount to €130-140 billion. Its final size will be determined after the International Monetary Fund assesses Ukraine's financing needs in 2026 and 2027.
- In total, Euroclear has accumulated more than €175 billion in cash from frozen Russian assets, which could be used to secure a new loan. But before the EU agrees to grant a reparations loan, it will want to repay the G7 loan to Ukraine of €45 billion ($50 billion) agreed last year, which was to be repaid from the proceeds of frozen Russian assets.
