Seven EU leaders back Ukraine reparations loan from frozen Russian assets

The leaders of Estonia, Finland, Ireland, Latvia, Lithuania, Poland, and Sweden sent letters to European Council President António Costa and European Commission President Ursula von der Leyen ahead of next week's EU summit.

The documents emphasize that the reparations loan mechanism is "the most financially feasible and politically realistic solution and it addresses the fundamental principle of Ukraine's right to compensation for damages caused by the aggression."

The letter also stresses that implementing the loan would strengthen Ukraine's negotiating position.

In addition, the leaders of the seven countries that signed the letter disagree with the analysis, suggesting that the loan could hinder a peaceful settlement. They believe that adopting the reparations loan at the next EU summit would place Ukraine "in a stronger position to defend itself and a better position to negotiate a just and lasting peace.''

This political message from Estonia, Finland, Ireland, Latvia, Lithuania, Poland, and Sweden came ahead of next week's EU summit, where Ukraine's financial needs will be the main agenda item.

Obstacles to approving the reparations loan

Most of the frozen Russian assets are held in Belgium, where the government has opposed using them, citing excessive risks and the potential to complicate the peace process.

Last week, German Chancellor Friedrich Merz personally visited Brussels in an attempt to persuade Belgian Prime Minister Bart De Wever to support the initiative, but no expected shift in Belgium's position occurred during a working dinner with von der Leyen.

In addition, France stated that it is not ready to include the Russian assets held in French private banks in the planned reparations loan for Ukraine, amounting to about €18 billion.

Germany, France, and Italy were expected to take on the leading share of the guarantees: Germany about €51.3 billion, France €34 billion, and Italy €25.1 billion.