BRUSSELS: The European Commission on Wednesday presented EU member states with two options to provide Ukraine with €90 billion ($105 billion) over the next two years: use frozen Russian assets or borrow on international markets. The Commission favors a “reparations loan” using Russian state assets frozen in Europe due to Moscow’s war in Ukraine.
Belgium, which holds most of the frozen assets through its financial institution Euroclear, has raised concerns that remain unresolved, but the Commission says the proposal addresses nearly all issues. Commission President Ursula von der Leyen said the plan would cover other EU institutions holding similar assets.
Read more: Putin-Trump envoy talks end with no Ukraine breakthrough
Von der Leyen stressed that the scheme is designed to pressure Russia while remaining a loan, not confiscation, since Ukraine would only repay if Russia pays reparations. She added that the proposal aligns with international coordination, including positive reception from US Treasury Secretary Scott Bessent.
The alternative option—borrowing through the EU budget—would require unanimous approval from all 27 member states, a challenging prospect given opposition from Hungary’s Russia-friendly government. Approval for the reparations loan requires support from at least 15 countries representing 65% of the EU population.
Read more: More hurdles remain in Ukraine peace talks, says Rubio
The Commission said the €90 billion would cover two-thirds of Ukraine’s funding needs over the next two years, with the remainder expected from international partners. Von der Leyen emphasized that the plan aims to increase the costs of war for Russian President Vladimir Putin’s aggression.