EU Finance Ministers Seek Reparations Loan from Frozen Russian Assets for Ukraine Aid

The European Union finance ministers have proposed a reparations loan using frozen Russian assets to aid Ukraine. The initiative aims to provide significant financial assistance without adding to the EU's debt. Belgium, concerned about potential legal repercussions, seeks a strong legal framework for the plan.

European Union finance ministers have reached a consensus on using immobilized Russian assets to create a reparations loan, deemed the most effective method to support Ukraine financially. This option emerged among three proposals discussed to address Kyiv's financial needs in 2026 and 2027.

European Commission President Ursula von der Leyen presented these options to the European Parliament. The chosen proposal leverages around 140 billion euros from frozen Russian assets, potentially converting a loan into a de facto grant if reparations from Russia are secured, minimizing national budget strains.

Despite Belgium's concerns over potential legal liabilities arising from this plan, the proposal enjoys broad support. Efforts are underway to develop a solid legal base for the strategy, ensuring its robust defense against potential Russian legal challenges while gaining EU leaders' consensus.

(With inputs from agencies.)