EU's Financial Support Options for Ukraine: A Crucial Decision Ahead

Ursula von der Leyen urged EU governments to choose from three financial support options for Ukraine, including a loan utilizing frozen Russian assets. EU leaders have yet to agree on this, following Belgium's concerns. A decision is needed by December to meet urgently Ukraine’s needs by 2026.

European Commission President Ursula von der Leyen has outlined three financing options for Ukraine in a letter to EU governments, emphasizing the potential use of frozen Russian assets for a loan. The options could also be combined, according to von der Leyen.

EU leaders recently agreed to support Ukraine for the next two years but have not finalized a method for using Russian assets, mainly due to Belgium's concerns. Von der Leyen's letter highlights the urgency of a decision needed by December's European Council meeting.

The European Commission proposes financing through member state grants, a Union-funded market loan, or a loan linked to immobilized cash assets. These options are flexible and could bridge funding until the long-term budget comes into effect in 2028.

(With inputs from agencies.)