Denmark announces progress in negotiations on reparations loan for Ukraine

Tetiana Bodnarenko
Tetiana Bodnarenko Journalist
Denmark announces progress in negotiations on reparations loan for Ukraine
Photo: Facebook/v.stephanie.lose
Copenhagen insists that a loan guaranteed by frozen Russian assets is the best solution for financial support to Ukraine in 2026-2027

The discussion on a reparations loan for Ukraine in the EU Council continues, but a decision could be made as early as next week. This was stated by Danish Minister of Economic Affairs Stefanie Løse before the meeting of the EU Economic and Financial Affairs Council in Brussels.

Reparations loan as the best option

Denmark, which currently holds the EU Council presidency, is promoting a loan mechanism for Ukraine guaranteed by frozen Russian assets. Loese emphasised that Europe's security is directly linked to what is happening in Ukraine, so new funding is a matter of collective responsibility.

She said that the financial details of the mechanism are still being clarified, including the terms of guarantees, risk sharing and the impact on the national budgets of EU countries. Some states still express concern, but the European Commission, according to Loze, has done a lot of work to reassure partners and explain the specifics of the instrument.

EU seeks solution by next week

Informal talks between ministers during dinner the night before demonstrated broad support for the idea of a reparations loan. They also discussed technical nuances, including the reflection of national guarantees in the state budget deficit.

Lose emphasised that the reparations loan mechanism will not increase the debt burden on EU countries, making it a «realistic and practical way forward».

She concluded that Europe cannot afford to do nothing, and a solution for Ukraine must be determined as soon as possible.

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