European Commission unveils proposals for financial assistance to Ukraine in 2026-2027
Урсула фон дер Ляєн (Фото - пресслужба Єврокомісії)

On Wednesday, the European Commission unveiled two options to support Ukraine's financial needs in 2026-2027: a reparations loan for frozen Russian assets and borrowing on behalf of the European Union under budget guarantees. This is reported on website European Commission.

The package of proposals for consideration at the EU summit on December 18-19 consists of five documents:

  • regulations on the establishment of a reparations loan mechanism;
  • proposals to prohibit the return of immobilized assets to the central bank of the Russian Federation;
  • two non-public draft amendments to the sanctions regulation 833/2014 with "safeguards" for the reparations loan (another parallel proposal will be prepared by Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy);
  • amendments to the EU's financial framework for 2021-2027 that would allow the EU budget to be used to secure a loan to Ukraine.
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According to the European Commission's proposal, the assets of the Russian central bank will remain immobilized until the EU Council decides that Russia has ceased to threaten the stability of the EU economy.

In making such a decision, it will take into account whether Russia has ended its aggressive war against Ukraine and has provided reparations to Ukraine in the amount necessary for reconstruction without economic and financial consequences for the EU.

The proposals stipulate that no claims in connection with the reparations loan will be honored if they are submitted by the Russian Federation, legal entities affiliated with the central bank of Russia, or persons acting on their behalf.

No judgment, arbitral award or administrative decision obtained by Russia or persons associated with it in connection with these measures shall be recognized, enforced or executed in the EU during the period of this Regulation.

"We are raising the price for Russia for its aggressive war. And this should be an additional incentive for Russia to sit down at the negotiating table," the President said Ursula von der Leyen.

Belgium criticized the proposal EU on the reparations loan before it was made public, saying that its position was "not heard."

  • on September 10, the European Commission put forward an idea "reparations loan" of EUR 140 billion, based on the cash balances of Russian frozen assets.
  • Thanks to the "reparations loan", Ukraine could receive 45 billion euros annually over the next three years – from 2026 to 2028.