Reparations Loan on hold: EU explores options to support Ukraine financially
Photo: Valdis Dombrovskis, European Commissioner (Getty Images)
The European Union is considering a temporary solution for financial aid to Ukraine in 2026, as the initiative for a Reparations Loan funded by Russian assets has not been approved, states European Commissioner for Economy Valdis Dombrovskis, according to Reuters.
"Our initial thinking was that we would be able to start providing, actually disbursing to Ukraine (under the Reparations Loan - ed.), already in the early second quarter of next year," Dombrovskis said.
He noted that the longer the approval of the Reparations Loan is delayed, the more complicated the situation becomes.
"It may open questions on some possible bridging solutions or so," he clarified.
According to the European Commissioner, he cannot go into the details of a possible temporary solution, but Ukraine’s financial needs are "sizable enough."
"If we run further delays without deciding on a Reparations Loan … then the question is how do we provide financial support to Ukraine early next year," he added.
Reparations Loan for Ukraine
Previously, the European Commission proposed providing Ukraine with a loan funded by frozen Russian assets. A large portion of Russia’s frozen assets is held in the Belgian depository Euroclear.
So far, Belgium has refused to support the idea of a Reparations Loan for Ukraine.
Brussels wants guarantees from other EU countries that they will promptly provide the necessary funds if the assets are returned to Russian control.
At the same time, Belgium insists that not only it but also other countries holding frozen Russian assets participate in such an initiative.
In addition, Belgium requires that, in the event of legal claims from Russia, the costs of legal defense be shared among EU countries and that the European Commission provide a strong legal basis for the initiative.
