💶 The EU proposes a “reparations loan” for Ukraine using frozen Russian assets

European Commission President Ursula von der Leyen has presented a new mechanism for financing aid to Ukraine using frozen Russian assets.

Source: Bukvy

According to her, this involves a so-called “reparations loan”: Ukraine will immediately receive the necessary funds, while repayments on this loan will only begin once Russia pays reparations. The frozen assets themselves will remain untouched.

In this way, the EU seeks to combine Kyiv’s urgent financial needs with the concerns of some member states that are wary of directly using Russian assets.

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Earlier, EU foreign policy chief Kaja Kallas emphasized that frozen Russian funds cannot be returned to Moscow until it compensates Ukraine for the damage caused.