Brussels: The European Union on Wednesday revealed details of its plan to use billions of euros in frozen Russian assets to fund Ukraine’s needs over the
Brussels: The European Union on Wednesday revealed details of its plan to use billions of euros in frozen Russian assets to fund Ukraine’s needs over the next two years, but Belgium rejected the scheme and insisted that it poses major financial and legal risks.
European Commission President Ursula von der Leyen said that the EU would cover two-thirds of Ukraine’s financial and military needs for 2026 and 2027, which the International Monetary Fund puts at 137 billion euros (USD 160 billion), by providing 90 billion euros (USD 105 billion).
She said that other international partners would be called on to cover the remaining third.
“Today, we are sending a very strong message to the Ukrainian people. We are with them for the long haul,” said von der Leyen while rolling out the proposal, which would use Russian money as collateral to fund Ukraine’s economy and war effort through a “reparations loan.”
Von der Leyen said that using the frozen assets would strengthen the Ukrainian position at peace negotiations with Russia and the US, but it would also send a message to Moscow that “the prolongation of the war on their side comes with a high cost for them.” She said that she had informed the Trump administration about the proposal.
EU leaders have committed to funding Ukraine over the next two years, whatever the method. The EU has already poured in over 170 billion euros (USD 197 billion) since the war started in 2022.
Von der Leyen said that if the loan plan didn’t pass muster, the bloc could borrow the money on international markets in a scheme underpinned by its long-term budget. The problem here, though, is that it would require the approval of all 27 member countries, and Hungary has consistently blocked aid to Ukraine.
