Reparations-based loan is the best way to support Ukraine's defence – EU chief diplomat
Providing Ukraine with a reparations-based loan backed by frozen Russian assets is the best option among all proposals for EU financial support in 2026-27.
Source: Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy, responding to a question from a European Pravda correspondent
Details: Kallas said that reparations-based loans are the most optimal form of financial support for Ukraine in 2026 and 2027.
"Many ministers (today – ed.) also raised the issue of financial support for Ukraine. A reparations loan is the clearest way to support Ukraine's defence. It is also a way to show Russia that time is not on their side," Kallas told European Pravda.
She noted that at a meeting of the EU Foreign Affairs Council on 20 November, the issue of Ukraine's financing "was not discussed in depth, though it was raised several times".
"Those countries that spoke in favour of financing also expressed their support for a 'reparations loan' and confirmed the urgency of moving in this direction," the EU's chief diplomat added.
"Supporting Ukraine is a better deal compared with the cost of a Russian victory," Kaja Kallas stressed.
Background:
- In 2026-27, Ukraine's budget will require €135.7 billion in external assistance, of which €83.4 billion will be for military needs.
- The European Commission has proposed three options for financing Ukraine over the next two years.
- The EU plan for a reparations-based loan backed by frozen Russian assets has stalled due to objections from Belgium, where the majority of these Russian assets in the EU are held and whose government fears legal consequences.
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