EU to discuss reparations loan for Ukraine from frozen Russian assets
EU economy and finance ministers are set to discuss a reparations loan for Ukraine based on frozen Russian assets during their meeting in Luxembourg on Friday 10 October.
Source: European Pravda, citing EU diplomats familiar with the meeting's agenda
Quote from a source: "During breakfast before the start of the ECOFIN [Economic and Financial Affairs Council] meeting, the issue of financing Ukraine in 2026-27 will be discussed, in particular the plan to provide Ukraine with reparations loans based on frozen Russian assets."
Details: According to the ECOFIN agenda, the informal breakfast will begin at 9:00.
"During breakfast, the European Commission will once again present its latest proposals on how best to use frozen Russian assets to support Ukraine," another diplomat added.
He noted that "the current stage involves the Commission responding to numerous questions from member states about its proposals".
One of the key topics is the mechanism for providing guarantees to Belgium, where the frozen Russian assets (held by the Euroclear depository) are located and are planned to be used for Ukraine's benefit.
"Member states may offer bilateral guarantees to Belgium. Additionally, there are discussions about securing these guarantees through the EU budget in the next budget cycle," one of the diplomats told European Pravda.
The issue of reparations loans will be reviewed at the European Council meeting on 23-24 October. After the leaders' discussions, the European Commission is expected to prepare a more detailed proposal.
During the formal ECOFIN session, the European Commission will also present the current status of financial support for Ukraine, along with updated information on the Russian economy and the impact of sanctions on it.
Background:
- German Chancellor Friedrich Merz said he expects a decision this month on the use of frozen Russian assets to further assist Ukraine.
- In response, Russia threatened to nationalise Western companies if the EU confiscates its assets.
- Belgian Prime Minister Bart De Wever asked other EU leaders to provide guarantees that they would share the risks if the frozen Russian assets located in Belgium are used to finance loans for Ukraine.
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