Europe considers using frozen Russian assets to finance loans for Ukraine
European Union leaders are exploring a plan to offer long-term financial and military assistance to Ukraine, using hundreds of billions of pounds in frozen Russian assets held throughout Europe.
This initiative underscores the bloc's resolve to independently bolster Kyiv's defences, particularly as the United States, under President Donald Trump, has ceased financial aid to Ukraine and significantly reduced weapons provisions. Moscow has vehemently condemned the plan, branding it "theft," News.Az reports citing The Independent.
Ukraine's budget and military requirements for 2026 and 2027 are estimated at approximately €130 billion (£111 billion). The EU has already committed €174 billion (£149 billion) since the conflict began in February 2022.
The largest portion of readily available funds stems from frozen Russian assets, with around €194 billion (£166 billion) held in Belgium as of June.
Further substantial amounts are located in Japan, totalling approximately $50 billion (£39 billion), alongside lesser sums in the US, UK, and Canada.
The European Commission is developing a new "reparation loan" proposal, which would be secured by these frozen assets. However, agreement from all 27 member countries is required, and not all were on board ahead of Wednesday's EU summit in Copenhagen.
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