EU commissioner urges G7 to speed up disbursement of US$50bn loan for Ukraine

The European Commission has urged Western allies to speed up the disbursement of a US$50 billion loan for Ukraine. This comes amid Belgium's ongoing blockade of the EU's proposed financing plan based on frozen Russian assets.

Source: European Commissioner for Economy and Productivity Valdis Dombrovskis in an interview with Euractiv

Details: Dombrovskis noted that countries must accelerate payments to Ukraine under the G7 loan agreed last June in order to close the financial gap early next year.

"We are in discussions with other international donors, seeing whether their support can be frontloaded to the beginning of the year," the commissioner said, adding that the donors include the United Kingdom, Canada, Japan and the United States.

According to Dombrovskis, this "may be sufficient … to cover Ukraine's funding needs in the first quarter of next year", although this still "remains to be seen".

The EU has already disbursed its share of the G7 loan, amounting to €18.1 billion.

However, around €14 billion from the package has yet to be paid by other countries – namely the United States, Canada, Japan and the United Kingdom.

Ukraine is expected to face a budget deficit of US$12 billion in Q1 2026.

Dombrovskis' remarks come as the EU attempts to reach agreement on a separate reparations loan for Ukraine using the proceeds from frozen Russian assets.

The European Commission hopes to persuade Belgium to support the scheme ahead of the December leaders' summit.

However, these efforts have suffered a major setback, as evidenced by a letter from Belgian Prime Minister Bart De Wever to European Commission President Ursula von der Leyen, in which he sharply criticises the proposed scheme.

Meanwhile, media have reported that European countries are developing a plan B in case they fail to agree on the use of frozen Russian assets to provide a reparations loan to Ukraine, so that the country is not left without funding at the start of 2026.

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