The European Commission presented, on Wednesday (3), a proposal to use frozen Russian assets to finance Ukraine’s war effort. The incentive would come through a loan, which Ukrainians would need to start paying only when they receive “war reparations from Russia.”
The total value of the loan is 210 billion euros, paid in installments for “sound financial management purposes” until 2030. The first amount, 90 billion euros, would be paid over the next two years.
According to the bloc, the objective of the financial aid is to support the country’s defense industrial capabilities.”
According to the IMF (International Monetary Fund), Kiev’s financial needs until 2027 exceed 137 billion euros. In the 2026 budget, Volodymyr Zelensky’s government will allocate more than 60% of spending to defense, .
European Commission President Ursula Von der Leyen said the EU would remain Ukraine’s “strongest and most steadfast” partner and that this loan would increase Russia’s war costs.
“And since pressure is the only language the Kremlin responds to, we can also intensify it. We need to increase the costs of war for Putin’s aggression. And today’s proposal gives us the means to do that,” Von der Leyen said at a press conference.
The proposal further agrees with and implements “safeguards to protect Member States and reduce risks”.
However, the appointment of the Commission president was not enough to alleviate the criticism. The Belgians still demonstrate strong opposition to the measures, considering the use of frozen Russian assets as a risk and the “worst financing option of all”.
Belgium’s charge is for a guarantee that other countries in the bloc will cover the costs of possible Russian legal actions against the use of these assets, which belong to the Central Bank of Russia. The country relies on legal interpretations that indicate that the transaction can be treated as a “confiscation”.
“Our concerns are being minimized,” said the country’s Foreign Minister Maxime Prevot.
France and Germany, on the other hand, state that they are “attentive” to the requests and that the differences can still be resolved, but they disagree that the operation represents a confiscation. Both strongly advocate lending with Russian assets.
while French President Emmanuel Macron points out that this would be a way of “putting pressure on Putin”.
*with information from Reuters and CNN Portugal
