EU proposes using frozen Russian assets and borrowing to fund Ukraine aid

The EU executive said its set of five legal proposals included a "reparations loan" based on Russian assets largely held in Belgium and a prohibition on transferring these immobilised assets back to Russia. The proposals also consisted of safeguards for the reparations loan designed to protect EU members and financial institutions from possible retaliation measures, and a proposed amendment to allow for use of the EU budget to underpin a loan to Ukraine. Belgium has criticised the EU proposal to use frozen Russian assets.

The European Commission on Wednesday put forward twin proposals of borrowing and using immobilised Russian central bank assets to help cover Ukraine's financing needs for 2026-2027. The EU executive said its set of five legal proposals included a "reparations loan" based on Russian assets largely held in Belgium and a prohibition on transferring these immobilised assets back to Russia.

The proposals also consisted of safeguards for the reparations loan designed to protect EU members and financial institutions from possible retaliation measures, and a proposed amendment to allow for use of the EU budget to underpin a loan to Ukraine. Belgium has criticised the EU proposal to use frozen Russian assets.