EU keeps reparations loan idea for Ukraine on its agenda, von der Leyen says

The European Union is considering using Russia’s frozen assets for a reparations loan in support of Ukraine.

European Commission President Ursula von der Leyen said this, Censor.NET reports, citing European Pravda.

"Our proposal for a reparations loan remains on the agenda. We reserve the right to use immobilised Russian assets," von der Leyen stressed.

She noted that Russian assets in the EU will remain blocked until the end of the war and the payment of reparations. Ukraine is not obliged to repay the loan until reparations are received, the European Commission president underscored, adding that this demonstrates "long-term and unwavering support for Ukraine".

What is known about the "reparations loan" for Ukraine

As a reminder, at a meeting in October, EU leaders postponed a decision on the use of frozen Russian assets as collateral for a so-called "reparations 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 the 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.