EU Proposes Using Frozen Russian Assets to Raise €90 Billion Loan for Ukraine

The European Commission has proposed an unprecedented plan to raise €90 billion for Ukraine over the next two years by either using frozen Russian state assets as collateral for a "reparations loan" or by borrowing on international markets, according to a Reuters report.

The European Union's executive arm has put forward a landmark proposal to fund Ukraine's military and essential services by leveraging assets frozen from Russia. The plan, detailed by Reuters on Wednesday, outlines two options: securing a "reparations loan" using immobilized Russian state assets as collateral, or borrowing against the EU budget.

European Commission President Ursula von der Leyen stated the €90 billion fund would cover roughly two-thirds of Ukraine's financing needs for 2026 and 2027. "Since pressure is the only language the Kremlin responds to, we can also dial it up," she told reporters.

The proposal faces significant hurdles, most notably from Belgium, where the bulk of the sanctioned Russian assets are held. A senior Belgian official told Reuters the country "cannot accept being asked to bear the risks of such an operation alone," citing concerns over potential legal costs and Russian retaliation. Belgium is demanding guarantees from other EU member states to cover any liabilities arising from the plan.

Russia has previously condemned any use of its frozen assets as "theft." The EU asserts the scheme is legal because it constitutes a loan Ukraine would only repay if Russia is ordered to pay war reparations.

The plan requires approval from at least 15 of the 27 EU member states, representing 65% of the bloc's population. EU officials hope to secure a political agreement at a summit of European leaders on December 18.

*Source: Reuters.*

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