European Commission to present reparations loan plan for Ukraine in coming weeks
Photo: European leaders will discuss a reparations loan for Ukraine this week (Getty Images)
The reparations loan plan for Ukraine could be presented in the coming weeks if European leaders reach an agreement on it during the European Council meeting on October 23–24, said EU Commissioner for Economy and Productivity Valdis Dombrovskis in the European Parliament.
"Additional support is needed to sustain Ukraine's defense efforts... We are working towards a collaborative effort with international partners to ensure fair burden sharing," Dombrovskis said.
He also stressed that the initiative by European Commission President Ursula von der Leyen fully complies with international law.
According to him, the reparations loan will mobilize significant new funds for Ukraine and send a clear signal to Russia that its aggression will not succeed. Ukraine will only start repaying the loan once Russia compensates for the damages caused, the Сommissioner said.
Dombrovskis also reminded about the mechanism to release interest from Russia's frozen assets, totaling €45 billion in 2024.
He noted that these G7 loans are being repaid and will continue to be repaid using profits from Russia's frozen assets. Implementation of existing euro-denominated loans is progressing well: €25.3 billion has already been disbursed by G7 and EU partners, he said.
The EU Commissioner emphasized that Russia is already beginning to pay for the destruction it caused in Ukraine.
