EU proposes two options for using Russia’s frozen assets for Ukraine - "reparations loan" and alternative joint borrowing, - Guardian
The European Union has proposed two basic options for using frozen Russian assets to provide financial support to Ukraine.
This was announced by EU economic spokesperson Balazs Ujvari, according to Censor.NET, citing The Guardian.
According to him, these are "two fundamental solutions" — a "reparations loan" and an alternative joint borrowing. It is on this basis that exchanges and discussions are continuing ahead of this week's European Council summit.
"We have two solutions put forward, which would ensure that in 2026 and 2027 Ukraine has the financing it needs. It is true that, according to what we see and if you look at the figures, the very beginning of the year, Ukraine appears to be covered by and large, and then as of the early spring, the new solutions could come into place," Ujvari said.
He added that this approach shapes the European Commission's vision for the timeframe of further financial decisions regarding support for Ukraine.
Russian assets to help Ukraine
- As a reminder, 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.
- 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.
