US stalling Ukraine's reparations loan from Russian assets – Bloomberg

According to the outlet, US officials told European partners at IMF meetings in Washington last week that they will not join the initiative at this stage.

One source said the US explained its position citing risks to financial market stability, while another noted that Washington is simply not ready for this step yet.

The US Treasury did not respond to requests for comment. In September, Treasury Secretary Scott Bessent said Washington is open to using about $5 billion of Russian assets frozen in the US, but no final decision on their seizure has been made.

Bloomberg reports that within the G7, the EU plan is supported by the United Kingdom and Canada, while Japan remains cautious alongside the United States.

EU leaders agree to share risks of a reparations loan

US caution over providing Ukraine with a reparations loan could increase doubts within the EU, particularly in Belgium, where most of the assets are held.

EU leaders have stated their willingness to distribute the risks of granting Ukraine a reparations loan. These include both financial and legal risks, as implementing the measure could affect EU currency rates and trigger lawsuits from Moscow.

Similar concerns were previously raised by the European Central Bank. Its President, Christine Lagarde, supported the idea of using the assets as collateral but emphasized that any action must be coordinated among all countries holding them.

Most of the €280 billion in frozen Russian assets are located in Europe, primarily within Belgium's Euroclear system.

Interest income from these funds is already being directed to Ukraine. However, the EU is currently considering using the assets as collateral to secure new financing.

News of the potential reparations loan to Ukraine first emerged on September 23.