Yesterday at 19:55
To strengthen Ukraine’s financial resilience amid ongoing Russian aggression, the European Commission has proposed two mechanisms to address Ukraine’s financial needs for 2026–2027: EU borrowing and a “reparations loan.”
This was reported on the European Commission’s website, UATV English reports.
The first option involves EU-backed borrowing, sourced from the EU budget.
The second — a reparations loan — would allow the Commission to borrow funds from EU financial institutions holding frozen assets of the Russian Central Bank.
According to the Commission, these proposals reflect the EU’s commitment not only to support Ukraine’s sovereignty and maintain state functions, but also to invest strategically in European security and the pursuit of a just and lasting peace.
The measures also introduce a set of safeguards to protect EU member states and financial institutions from potential Russian countermeasures or unlawful expropriation outside Russia, including in jurisdictions friendly to Moscow.
To cover potential risk, the plan includes a strong solidarity mechanism, backed either by bilateral national guarantees or the EU budget.
The Commission stressed that the proposals fully comply with EU and international law, while protecting the integrity of the EU financial market and maintaining the euro’s status as a global currency.
“We are proposing solutions to help cover Ukraine’s financial needs over the next two years, to support the state budget and strengthen its defense industry as well as its integration into the European defense industrial base. We are proposing a reparations loan, using the resources of frozen Russian assets in the EU, with solid guarantees for our Member States,”
— European Commission President Ursula von der Leyen said.
She added that the EU is raising the cost of Russia’s aggressive war, which should serve as an additional incentive for Moscow to sit at the negotiating table.
As reported earlier, the European Commission has also proposed a legal solution aimed at addressing Belgium’s concerns over using €140 billion in frozen Russian assets in Brussels to finance Ukraine.
