Ukraine, 2 EU proposals for loan to Kiev: from EU budget or Russian assets

Brussels, 3 Dec. (LaPresse) – The European Commission has presented two solutions to support Ukraine’s financial needs: an EU loan, based on the Union’s budget, and a reparations loan, which would allow the Commission to borrow from EU financial institutions holding frozen assets of the Russian Central Bank. Both solutions are supported by five legislative proposals establishing safeguards to protect member states and financial institutions from possible retaliation by Russia, including illegitimate expropriations abroad. The package includes measures to preserve the integrity of the EU financial market and the euro’s role as a global currency. The proposals include a regulation to establish the reparations loan, a proposal to ban the transfer of Russian Central Bank assets to Russia, and two proposals to protect member states from retaliation. Another proposal aims to amend the current multiannual financial framework to allow the EU budget to finance the loan to Ukraine. The Commission reiterates that, due to ongoing Russian aggression, European financial support is crucial for Ukraine, as highlighted by President von der Leyen on 17 November 2025.