EU clarifies the idea of a “reparations loan” for Ukraine
1 October 2025 00:44
During a joint press conference with NATO Secretary General Mark Rutte, European Commission President Ursula von der Leyen explained the mechanism of the so-called “reparations loan” for Ukraine, a financial instrument that will allow Ukraine to raise funds from the profits of frozen Russian assets without violating international law. This is stated on the website of the European Commission, according to "Komersant Ukrainian"
“The funds will be disbursed in tranches and with certain conditions. Part of the loan will be used for procurement in Europe and in cooperation with the EU,” von der Leyen emphasized.
The European Commission President emphasized that it is not about confiscating Russia’s assets, but about using their profits:
“Ukraine will have to repay the loan if Russia pays reparations. The culprit must be held accountable.”
How the “reparations loan” will work
The idea is to use the proceeds from Russia’s frozen sovereign assets, which are currently held in European financial institutions.
The total amount of such assets in Europe is about 210 billion euros, of which 175 billion is cash in accounts with the Belgian depository Euroclear.
These funds could form the basis of a new instrument to support Ukraine.
The EU proposes to direct the profits from these assets to a special fund, replacing them with zero-coupon EU bonds to avoid legal risks and formal confiscation.
Amount of assistance and next steps
According to European officials, the reparations loan could reach up to 130 billion euros. The final amount of funding will be determined after an assessment of Ukraine’s needs by the International Monetary Fund in 2026-2027.
Before launching this program, the EU plans to fully repay the previous G7 loan of 45 billion euros (approximately $50 billion) agreed last year.
Thus, the new initiative may become a key step in the formation of long-term financial support for Ukraine, where Russia will actually indirectly pay for the damage caused by its war.
EU-NATO cooperation is the key to peace
Von der Leyen emphasized the importance of joint actions with NATO in protecting European borders and supporting Ukraine:
“We must act together – quickly, decisively and strategically. Ukraine is fighting not only for its freedom, but also for the security of the whole of Europe.”
