EU weighs three funding options for Ukraine, Von der Leyen tells member states
European Commission President Ursula von der Leyen has outlined three possible ways — or a mix of them — to meet Ukraine’s financing needs, according to a letter sent to EU governments on Monday.
EU leaders agreed last month to support Ukraine’s urgent financial requirements for the next two years but did not settle on how to fund a major loan linked to frozen Russian assets, after Belgium raised legal concerns, News.Az reports, citing Reuters.
Von der Leyen said the Commission has identified:
Direct grants from member states.
An EU-backed loan, raised by borrowing on financial markets.
A loan tied to the cash balances of frozen Russian assets.
The Commission noted that the options can be combined or rolled out in sequence, especially given the urgency and the need to start disbursing funds by Q2 2026.
According to the attached options paper, grants or EU borrowing could act as “bridging solutions” until the bloc’s next long-term budget begins in 2028, which could then guarantee larger EU-funded loans.
Von der Leyen urged capitals to move quickly:
A clear commitment must be reached by the European Council summit in December to ensure consistent financial support for Kyiv.
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