EU announces reparations loan for Ukraine: When decision is expected
Photo: EU Defense Commissioner Andrius Kubilius (Getty Images)
The European Union's defense roadmap foresees providing Ukraine with a reparations loan by the end of 2025, said EU Defense Commissioner Andrius Kubilius.
Kubilius emphasized that Ukraine's defense deserves support from the European Union.
He said the reparations loan is expected to be implemented by the end of 2025, and Ukraine is ready to assist with its proven combat experience. According to the Commissioner, the EU and Ukraine are jointly building a European defense shield.
Kubilius also noted that certain European defense initiatives could be implemented in cooperation with Ukraine.
He stated that the European counter-drone initiative and Eastern Flank Watch are among the projects that can be launched immediately to gain practical experience. According to him, these projects can be carried out together with Ukraine.
Reparations loan for Ukraine
The reparations loan for Ukraine is a new financial mechanism the EU plans to create to ensure long-term support for Ukraine's reconstruction and defense capabilities, funded by Russian assets frozen in the EU.
Purpose:
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Ensure Ukraine's financial stability during and after the war.
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Allow the EU to begin reconstruction without waiting for an official reparations mechanism.
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Maintain legal transparency.
As previously reported, Ukrainian President Volodymyr Zelenskyy urged European leaders to use frozen Russian assets for Ukraine's reconstruction.
One proposed mechanism is the potential use of Russia's frozen EU assets as a so-called reparations loan for Ukraine. Under the plan, the loan would only be repaid after Ukraine receives compensation from Russia.
