EU leaders to find solution on Ukraine funding for 2026 and 2027 on Friday - Reuters
Today, leaders of the European Union must decide how to finance Ukraine in 2026 and 2027 so that it can repel Russian aggression.
This was reported by Reuters, according to Censor.NET.
What is known?
The publication notes that the main option is to use frozen Russian assets, but implementation depends on the uncertain approval of Belgium.
Yes, negotiations between leaders on Thursday will focus on narrowing the scope of guarantees to a form that will be acceptable to all EU countries, diplomats say.
"This is not the European Council where we can leave on Friday and have nothing. So the decision will be available on Friday morning," said one of the diplomats.
He added that if the EU fails to find answers to the question of how to finance Ukraine in 2026 and 2027, it will deprive it of the opportunity to defend itself.
"This will have serious consequences... for the security of the rest of Europe," the diplomat said.
What is known about the "reparation loan" for Ukraine
- We would like to remind you that at a meeting in October, EU leaders postponed a decision on the use of frozen Russian assets as collateral for a so-called "reparation loan" to Ukraine in the amount of €140 billion ($163 billion). EU leaders plan to return to discussing this issue at a meeting on 18-19 December.
- 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 response, Russian dictator Putin signed 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.
