The EU may grant Ukraine a “reparations loan” of up to €210 billion
The EU is considering large-scale support for Ukraine: members of the European Commission are proposing to allocate a “reparations loan” to Kyiv totaling €165-210 billion. These funds are intended to provide compensation for the war, using Russian assets frozen in the West — in particular, those held in Euroclear and other depositories. This was reported by The Public with reference to Politico.
According to the proposal, part of the assets — approximately €140–165 billion — could be legally tied to the provision of the loan, while the rest of the seized funds would serve as a guarantee of repayment. The loan would be provided on preferential terms; Ukraine would repay it only if Russia ever pays reparations.
However, the initiative is being approached with caution: a significant portion of the funds are indeed frozen in Belgium, which holds some of the assets in the accounts of private entities and keeps reserves through Euroclear. Belgium and some banks have expressed concern about the possible legal and financial risks in the event of claims from the Russian Federation or the refusal of member states to assume responsibility.
Diagram: Politico research
Brussels is already preparing options to avoid blockages by individual countries: among the scenarios are the use of pan-European debt or mechanisms that do not require privatization of assets, but only their use as collateral.
Overall, the idea of a reparations loan is a bold step against the backdrop of a long-running war, which could provide Ukraine with the necessary funding without new debts and direct taxes. But its success will depend on the political will of the European Union, its ability to resolve legal issues, and the unity of its member states.
